At the time it seemed okay. But, I hope we have all grown past that. Minorities frequently change old slanderous labels into names reflecting their new sense of power. African-Americans have not been called that for very long. Queer Nation embraced an old term that they then gave new definition.
Humans never stay in traditional grooves.
The grease of human interaction is respect most of all. Folks who throw the term P.C. around are frequently afraid of their own positions in community. But, they don't have to be cut loose from the pier for traditional out-groups to launch their own crafts. I'm interested in how it is that people coming out of the same social context as the rest of us march to the beat of a different drummer. Because often these groups are trend setters.