If it had, it wasn’t nearly as used as it is now. I first remember hearing the term sometime in the late 60s, right in the heart of the hippie and anti-war goings-on. I believe that’s when it really began having widespread use.
You're correct. The early use of the term simply meant a hedonistic, immoral lifestyle. It was in the 60's that it began to be used as an exclusive homosexual euphemism.