WTH????

So one of my friends today called me a fag. Why would one of my "friends" do that? I got on to them about it but she said it was in a nice way. There is no nice way to say that, its just obscene. Yes i am gay and i am quiet open about it but just because i am gay does that give you the right to let out any type of degrading slur you would like? That is just offensive even if no harm is intended. My personal philosophy is is that if it doesn't apply to you, you have absolute no right to use it. I would never walk up to one of my black friends and say "you are a stereotypical N*****"' thats just rude on so many levels. No matter if no harm is intended. Am I over reacting? I think i might be, but I think i have made it clear in the past that i don't like that word. I feel that my reaction was called for. I still love my friend but i felt that that remark hit a little too close for home even for just playful banter, even tho i knew that no harm was intended. I just feel that, especially from your close friends, that we need to be trying to stop this sort of thing, not encouraging it amongst our peers. I don't use common redneck stereotypical jabs at her.