Your mistake is in assuming that we can attach fixed meanings to words.
I appreciate all of your thoughts, but no, I'm not assuming that we can attach fixed meanings to words at all. On the contrary, the reason I'm asking the question and taking the poll is precisely because I recognize that words
do often have multiple meanings. My goal is to get some of idea of how much the word "fag" has changed and evolved in meaning.
In reading comments online and hearing conversations between people younger than I (I'm 39), I've gotten the impression that - similar to the word "gay" - the word "fag" no longer necessarily means "homosexual" - at least in American English usage. Among American young men in particular, calling your friend "fag" is equivalent to calling him "jerk" (in a friendly way). Calling a friend "fag" or "dick" is certainly cooler than calling him a "jerk", which I believe has a somewhat feminine quality to it. It's not a word that guys use as often as girls.
We had a big discussion here a few months ago about the phrase "that's so gay" and whether or not homosexual men should be offended by it. At first, I strongly believed that it was offensive to use "gay" as a pejorative, but as I did more research, I learned that - again, especially among younger people - the word "gay" sometimes has nothing to do with homosexuality. It may have started out as a negative reference to homosexuality, but it has evolved for many to simply mean that something is dumb, frustrating, or broken. I don't take offense to it anymore.
By the way, I've been told by young men in England that the word "fag" - especially amongst younger men - has evolved to mean "homosexual" just as much as it means "cigarette". It's used as a pejorative among children, just as much as it is in the U.S. For reference, here's a report on insults used by British schoolchildren:
How 'gay' became children's insult of choice in Britain