Both of you are right.
Originally, fundamentalism stood for certain historic biblical Christian principles that I support.
The word has since floated and is really no longer associated with those principles and is more associated with an unforgiving intolerance toward others of a different faith than oneself.
In the original sense I adhere to those biblical fundamentals. In the more modern use of the word (even if it is a use created by opponents), I am not supportive of unforgiving intolerence.
And who practices that? I suspect that the MSM creates these stereotypes of unforgiving Christians and then labels them fundamentalists, whereas I really don't think I've met too many of those people. The intolerant churches are the ones who don't like fundamentalists in their ranks. If you believe that homosexual behavior is against God's order, you are labeled an intolerant fundamentalist bigot.
Frankly I consider that a compliment. But frankly who are the separatists? It is the post modern neo-secularist lefties that have caused the division. Not the conservative fundamentalists. All they want to do is to hold fast to their profession of faith without wavering. If that upsets the apple cart, then the apple cart is filled with rotten fruit.