True story:
A pilot I flew with was at an FBO in NC and noticed one of the ladies behind the counter had a picture of Elton John just laying there. My friend tapped the picture with his finger and said, “Is that Elton John? He’s an ol’ faggot, ain’t he?”
The blood drained from the lady’s face and her mouth dropped open. My friend felt a hand on his shoulder, turned and looked down and there was Elton John, just smiling away. My friend just stood there, too shocked to say anything and Elton John, still smiling, said, “You Southern boys will never change” and walked away.
Here's some x-rated (radio X) tape from a radio show of Elton John recording an ad for the Pink Pussycat Boutique. And he himself refers to some of the customers as faggots.
http://www.youtube.com/watch?v=IOUEjhQFUFk
There is also a blooper from the second Indiana Jones movie where Barbra Streisand is whipping Harrison Ford for all of the bad movies he'd done. She doesn't put full force into the whip action so as not to really hurt him (almost limp wristed) and Brabra says "I feel like such a faggot doing it this way."
Their outrage is quite selective.
Here is a poor quality copy of the Barbra Streisand footage from Indiana Jones.
http://www.avclub.com/article/watch-barbra-streisand-whip-indiana-jones-61465
I saw it publicly screened (Director Gary Marshall brought a copy of the full blooper reel with him) in Boston in the 1980s.
I was unaware that it “surfaced on the internet” in 2011 or was “only rumored to exist” until then.