There are many terms that have been recently "reclaimed" by various groups, to try to take the sting out of their tail. Black people can call each other "******", disabled people can be "crips" and, the jewel in the crown, now "Gay" is the accepted and politically correct term for "homosexual". In fact, the word "homosexual" itself is now seen as slightly un-PC. However, you must be very careful with these word. Obviously, if you arewhite, you do not want to be going around calling people "*******", or even "******". The same is true for the word "poof". If you are not one, it is expedient to steer clear. Hence Big Brother and the controversy.
Hope that helps.