I used to use that phrase a little often in high school. Well, more specifically, junior year. And there was a girl in the class who always pitched a fit about it. But, since I hated her from the day I even met her 3 years earlier (and still do today) I paid no mind to it, and looked at the offensive edge as a plus.
Anyway, I don't use it anymore. Not because I disagree with its use. But because it's OVERused in general. I'm usually more along the lines of saying "That's fucked" or something similar. People who do get offended by it don't have an extremely good reason to. Plenty of words have multiple meaning, and the first meanings to the word "gay" DIDN'T involve homosexuals. So technically, they stole it. And the rainbows too. =(
Poor Lucky and his charms. *sigh* I have no problem WITH "gay" people. However, as mentioned earlier by someone else, there's a different between being gay and being a complete and utter flamer. Or, as Dane Cook put it, "Esses". And FYI: The whole "pansy" thing is not directly used to describe the STRENGTH aspect of a person, but moreso the impression given by their general PRESENCE. So it doesn't mean that flowers aren't strong, but uh.. I doubt the first thing on the Hulk's list of goals is to be reincarnated as a... carnation.