I think saying that it no longer refers to homosexuality is trying to defend a practice that has its roots in bigotry and ignorance. To call something "gay" or "faggy" in order to demean it just exposes a person's own prejudice or ignorance.
Other phrases exhibiting this tendency: "To jew someone down" "What a gyp" "That's mighty white of you" "Nigger-rigged" "Welsh on a debt", etc. Think about what you say before you say it and you'll be fine.
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it's quiet in here
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