In all fairness, it's much easier to pronounce in acronym form than all spelled out. Of course, I'd think a Z for zero would be preferable to the number 0 itself. THACZ. Still overly 1337-sounding, but not quite as offensive in my opinion.
In my book this abomination does not satisfy the minimal criteria of acceptability to be considered an actual word. Someone's PIN perhaps, but not admissible as a token of value when attempting to exchange ideas with others.
Certain cultural back-alleys (internet chatrooms, MMORPGs, the corporate-training-management-theory industrial complex) seem to have a greater propensity for generating this kind of indigestible unpronounceable hexadecimal hybrid masquerading as a word. That doesn't oblige the rest of us to accept them.