'I have interviewed scores of school kids about this and they are always emphatic that it has nothing at all to do with hostility to homosexuals,' says Mr Thorne, compiler of the Dictionary of Contemporary Slang. 'It is nearly always used in contexts where sexual orientation and sexuality are completely irrelevant.'"
Sorry, I'm not buying it and I personally find it very offensive. Just go back to the list and see the insults; they are all directed towards either gays or women.

My teenagers say it quite often and I'm always yelling at them that they mean "lame" and to say what you mean & mean what you say. I've noticed that there are very few insulting words for the male gender and for their body parts; whereas for women... well, men don't like to be called those names, either.