Ok, I understand we can only use this in the PIT to refer to our fellow posters, right?
But how about when we are not referring to a Poster? Like if someone had a thread in GD, and terrorists were brought up, and I said "I think terrorists are a bunch of :wally "- is that OK? 
And if not- and if we do have a smiley that can only be used in the PIT- why not just get rid of it?
It is only not allowed when you are using it to call another poster a name. Your “terrorist” example is fine.
I find the rules about that smiley problematic, because the damn thing is winking. How can a straightforward insult be said with a wink?
I miss the old days, when you could call someone a putz in GD.
Because it’s winking at you, not winking with you? 
Ah, thank you. Perhaps then the sticky might be clarified?
What about the ;j smiley isn’t that…
Oh, nevermind…
Yes, it was great when there was one notable exception to the GD rules. Except not really. 
Well, OK. Just for you.
Curious, I looked up ‘putz’ for the first time to find that it means:
A fool
A penis
So if I say, for example, that I have smelly lesions on my :wally, that would be bad, right? Perhaps I should rephrase that but, then again, perhaps I shouldn’t…
Man, if you don’t know if smelly lesions on your penis is bad, you really need to see a doctor.
What puzzles me is that the Wally smiley is made with a colon, but is winking, while the Jewish smiley is made with a semicolon, and has both eyes open. It’s like that whole driveway/parkway thing, all over again.
I may be foreign and not a doctor, but I know what a colon is and I am, quite frankly, disgusted by your suggestions, Chronos. The word ‘semicolon’ sends shivers down my crooked spine, despite the fact that Jews seem to smile with theirs.
I’ll go home now, shmuck that I am.
No - I’m sure he meant there are smelly lesions on his fool.