Well, I've always used the term as just a simple pejorative, like asshole or douchebag, but there have been some gays on this site that got all pissed off when I used it (guess they're slow with the times).
Anyone who knows me knows that I don't hate gays for being gay or blacks for being blacks. I hate people for being douchebags (which are a lot of people), so I call a LOT of people "fags".
Now, it would make sense if fag was always used as a term to mean "gay" that gays would be rightly upset every time the term was used, but it hasn't. For however long it has meant gay, it was used much longer to describe a bitter old woman or just someone who gathers firewood. This is something I always knew, and I've even used it as a defense for myself on this site. I am very politically incorrect and use other pejorative terms for gays outside of this site (i'm not the attacking kind on this site) just to piss people off. I say Nigger, FudgePacker, Kike, Spic, Whop, White Trash, Chinc, Cunt, and all kinds of terms that piss off certain groups of people mainly because swearing doesn't have the the same effect it did 50 years ago (you can thank shock jocks and George Carlin for that). But here I'm careful to just use terms like fag, asshole, douchebag and etc, and that's only for describing third parties.
But now, South Park has made an episode defining a fag as an annoying, incosiderate person who usually rides a Harley Motorcycle. So hopefully limousine liberals (and other fags) will finally get the message on what fag means to the younger, politically incorrect generation.
On a side note, has anyone else noticed how political correctness might be starting to die off with the younger crowd? Or is it just the people I hang out with?