I wonder how the word became a derogatory term in the first place.
From thefreedictionary.com:
*Not nice word for gay men* (ˈfæɡət) or fagot
n
1. a bundle of sticks or twigs, esp when bound together and used as fuel
2. (Metallurgy) a bundle of iron bars, esp a box formed by four pieces of wrought iron and filled with scrap to be forged into wrought iron
3. (Cookery) a ball of chopped meat, usually pork liver, bound with herbs and bread and eaten fried
4. a bundle of anything
vb (tr)
5. to collect into a bundle or bundles
6. (Knitting & Sewing) needlework to do faggoting on (a garment, piece of cloth, etc)
[C14: from Old French, perhaps from Greek phakelos bundle]