I go to a Boys School, so I hear it all the time.
But it's just teasing, no one would say that to someone who they know is openly gay. Only to those who obviously aren't gay, but are perhaps acting a bit gay with certain actions/gestures, etc...
Most people aren't using in a way to insult gay people. Stop looking for something to get offended by, move on.
I use it a lot when talking to my friends.
I think when people use that phrase they aren't necessarily implying they think there's anything wrong with gay people, any more than people who call people "****ers" means they think masturbating is wrong. However I can understand why someone who actually is gay might get upset by that, and well, with the latter term, chances are the insulter is also a ****er if you take it literally. When I was in school a lot of kids used the word "Jew" as an insult. I didn't know any Jews but I suspect if there were some there they wouldn't have enjoyed the experience.
Yeah I regularly call people gays and ******s etc., but that's because they work well as insults, the word ****** just has some comical connotations unrivalled by other curse words, I don't associate it with gay people though or mean it to offend them
I have to admit that I still use it from time to time with my friends. I personally don't see it as being a problem as I think most people understand that the meaning of the saying has evolved to the extent where it's not really considered derogatory now (at least with younger people).
Didn't realise so many people were sensitive about this, "gay" gets thrown around left right and center with my friends.
Then again so does paki, terrorist, the n word... we're not very PC.
We're so old we don't hear it but I bet tween boys still use it all the time.
And as everyone knows trying to make tweens of all sexes and backgrounds stop behaving like absolute brain-dead idiots will drive you to drink.