But I bet if she had said "that's so queer" she would have still gotten in trouble. Or, "Shut up, fag."
What if she had said, innocently, "why, what a queer thing to say!"
Perfectly good use of English.
I like the word "pervert". It's a nice all-around word which can mean 'dirty old man', 'child molester', or 'alternative lifestyler'