yes, it doesn't sound as offensive as when straight ppl say it, but why would you want to use that word? I just don't get it. Is your vocabulary that horrendous??
It's not something you want to be called of, just like black people using the n-word.
It's disrespectful and if you use it to refer to other people of a certain group, calling them by names they don't like other people out of it using, you probably shouldn't use the word either.
We have names and people should only use them. Respect and be respected. It might not have the original meaning when they use it, but it doesn't mean it's ok. For those who use it, just don't.