When someone claims it isn't a word, they mean it's not a proper word, much like irregardless is not a proper word. And yet, irregardless is now included in most dictionaries with the disclaimer that it is a word that, due to repeated misuse, has now been acknowledged to mean "without regard" even though it literally means "without without regard." Double negative anyone?

Conversate is a slang word. Is it a word? Sure. It's slang for converse. It's unnecessary, and makes you sound like you don't know how to speak, but that doesn't mean it's not a word, only a slang word.

@ Moron Detector
What is even funnier is that is seems you missed the sarcasm in that post... or maybe I've missed it in yours. C'est la vie.

As for using conversate... use it. Don't use it. The prior makes you look unintelligent. The latter doesn't make you look smart, but it doesn't make you look stupid either. The only time I could see using it would be as a joke or to make something rhyme in a poem or song... or maybe both. :)

using conversate to
try and bait you
just you wait to
retaliate you
can't berate who
can educate you
and irritate too
before it's too late to
it's half past eight foo'

Marshall Mathers, eat your heart out.