I used to get really pissy about it but I don't really care, so long as there's no homophobia behind it... I use words like 'gay' or 'faggot' or 'ponce' in that way sometimes, but only jokingly or in the same way another race would use their own racial slurs.
However, particularly with worse words, I do understand where they're coming from. It is completely socially unacceptable to call someone a "nigger" unless you're black, dating a black person or you're on the internet, but "faggot" is rarely the same, and when people use it in real life, especially just kids in school, and teachers or parents don't call them out on it, it just keeps the stigma going. And it doesn't help that, until college, there's next to no education about the injustice and cruelty gay people experience, or the morality or theorised causes behind it.
My 8 and 13 year old cousins used to say 'that's gay' all the time, but now they just say 'that's Jewish'... Probably because my aunt thinks I'm gay, because my mother told her, because she thinks I'm gay, because I told her, even though it's not true... But nobody likes Jews anyway.