I think most words people use these days used to mean something else, the word "cool" or "bastard" for example, the list is almost endless.
The word faggot has been used in English since the late 16th century as an abusive term for women, particularly old women,[9] and reference to homosexuality may derive from this,[8][10] as female terms are often used with reference to homosexual or effeminate men (cf. nancy, sissy, queen). The application of the term to old women is possibly a shortening of the term "faggot-gatherer", applied in the 19th century to people, especially older widows, who made a meagre living by gathering and selling firewood.[10] It may also derive from the sense of "something awkward to be carried" (compare the use of the word baggage as a pejorative term for old people in general).
Bundle of Wood: Especially used for burning heretics (emblematic of this from 1550s), so that phrase fire and faggot was used to indicate "punishment of a heretic". Heretics who recanted were required to wear an embroidered figure of a faggot on their sleeve, as an emblem and reminder of what they deserved.
I don't think we should get all "butt-hurt" over words (which would make us fags), you have no right to not be offended.