Speaking for myself, I went to an all-boys school where 'gay' was the standard insult, used constantly and without reference to any sort of sexual preference (I'm reminded of a quote, though I don't remember where it came from: "You have a girlfriend, that's so gay!").
In any case, people mostly seem to grow out of it by the time they leave school. Which is not to say that I've never heard it at university, but there it is mostly done tongue in cheek; taking the piss out of the insults kids used back in high school.
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Only two things are infinite, the universe and human stupidity, and I'm not sure about the former...
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I think it's generally credited to Albert Einstein but it is probably made up completely.