Big deal. Gays call themselves, and each other, fairies and fag/faggot all the time. Just like blacks call each other "the N word" all the time. Saying it's ok for them to say those things and forbidding other from saying it means the words mean nothing more than an attempt to control what others say.
I am speaking of the life of a man who knows that the world is not given by his fathers, but borrowed from his children; who has undertaken to cherish it and do it no damage, not because he is duty-bound, but because he loves the world and loves his children… - Wendell Berry, 1971