Complicated answer? Its used derogatorily in its application towards a male, inferring said male is effeminate which some may consider to mean weak and meek.
Answer according to my experience? I don't remember hearing that term growing up because most kids used the lovely nickname applied to female genitalia. It might even be considered a "polite" way of calling out someone who lacks courage.
Having said that, it is a term sometimes used to insult members of the gay community, but I just spoke with a friend of mine and he told me he uses the term for other gays. So -- to each their own. If you didn't use it to mean "gay" in an insulting manner, then that person needs to calm down a tad. HOWEVER --- its not the best way to describe someone who is weak or cowardly because being feminine is neither.
:)
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