I'll use "fag" every now and then, just like I would use any other insults. If some people get offended by it, well it's really not my problem. I have absolutely nothing against homosexuals, I even think they should be allowed to get married and all that. So using "fag" doesn't make a person homophobic. Fag has more than just one
definition...
As for "gay", well it means two things: happy or homosexual. And since none of these things are bad, I don't use it as an insult.