I agree with kadath.
To call someone a "fag" or to call something "gay" is to insinuate that it's a bad thing to be gay. Some people believe this is true, but the use of the epithet is still bigoted IMHO.
Really, the same is true of a lot of words we throw around all the time: bitch, prick, cunt, etc. They assume that the things the words refer to are negative in some way.
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"If ten million people believe a foolish thing, it is still a foolish thing."
- Anatole France
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