I think it's tossed around primarily in the generic teenager fashion of "weird, ugly, different, reprehensible for some reason, negative" way, I've seen it spelled at times "gey" rather than "gay".
My 2 kids are teenagers, and judging from context I hear it from them apparently it is current lexicon for a negative judgement towards something and multipurpose in the extreme.
In modern society "gay" means one thing, but the way the term is used lately in real life and this forum appears to indicate it has mutated into a different spelling and much broader usage.
If it was always used in reference to something stereotypically homosexual in nature, it would not work in the broad usage youth (and those who are around them) typically employ it.
So in short answer, I don't think you should judge those who employ it unless it is specific to the context in which it is used. Or, being from liberal-minded California, perhaps you shouldn't judge people at all, regardless of what semantics they favor.
P.S.- Your actual post was so directly contradictory it could almost be considered an oxymoron...
"don't spend our time wondering into what sub-group we can peg folks."
"Are the members of the .oRg homophobic, insecure, closeted, or"
