It is a word I word I would never use. I hear it from young people though. I also hear them use retard and the "n" word. Actually, I hear African-Americans saying the "n" word to each other and laughing as they do. I think it is OK to them for them to say it to each other but I'll never be using it.
I also think of "Good Times" when I hear the word ghetto. JJ always said it like it was a "sad" (as in tough, I guess) place to be from but they were gonna make it anyway. At least that was my 10yo mind's way of taking it.