It has never had a negative connotation when used within that community, beyond, perhaps, a bit of shade-throwing.
I knew my parents would be fine, knew my family would be fine.
Really, it is their word.
So how about you stop being lazy and try educating people rather than calling them stupid and say a word needs to stop being used? It made no sense to me.
Outside, in public, in open conversation, it has no place, as it is a slur.