Went wandering on the Interweb last night and found a new teacher's blog for your consideration; Tales from the Chalkface. Vinni had a link to this flurry about the use of the term gay from back in June (about the time I lost the third member of my department to ill-health and gave up sleeping as well as blogging.) His writing on the subject is very amusing.
Personally, I am in a time of transition on this issue. Much as my tolerance for pimp chic is sadly growing by the year, I regrettably no longer pursue the 'gay computer' issue with as much passion... which is sad because I think it's completely obvious that the word 'gay' (as in the sentence 'Miss, this computer is gay') means 'crap' only because there are people in our society who think that gay people are crap. It's disingenuous to say 'the word has changed it's meaning'.
If kids took to saying 'This computer's really Muslim' we wouldn't be having any of it. It's grim to note, however, how both genders play fast and loose with each other's genitals when insulting people; that battle is lost forever. (Er, please read that sentence carefully.)
As with all these things, it comes back to the effort required to take a 'zero tolerance' approach to things like this. Teachers have to pick their fights and save their precious ammunition.