Magic Man
Reaper of Conversation
How old are you, Ritalin?
I'm 34, and I'm old enough to remember the transition when "f____y" (can't say it directly because of our profanity rules, but the adjective form of the "f-word" slur against gay people) was used as a synonym for "lame" or "crappy", which then got replaced with "so gay" in popular speech. IMO, the link is clear.
I don't deny that the use of the term as it is comes from a time when homosexuality was seen by most as wrong and bad and stupid. However, that doesn't necessarily mean it has to continue that association. I believe the example of "*******" was brought up much earlier in the thread. It used to be that being fatherless was a bad thing, and so "*******" came to be an insult. I'd have to think the vast, vast majority of the time people call someone else a ******* now, "illegitimate child" never crosses their minds. The term has two distinct meanings now that are at this point unrelated.
EDIT: Sorry, didn't realize that would be censored. The word, as I'm sure you guessed is "B******", which is also the name of a kind of sword.