Help with the terms below

Hi. I came across the word "faggot" several times while reading a book, whose central character - who also uses the word "faggot" - lived during the 1960s. However, it strikes me as odd, because otherwise she does not seem to be homophobic or anything, and her best friend used to be gay. So, I'm trying to understand if it was more acceptable back then to use the word "faggot". I'm not saying that homosexuality was more widely accepted back - because it was not, obviously - I'm just trying to understand if "faggot" was the standard word to use, even by those who weren't homophobic. I don't know really when the term "gay" or"homosexual" became the neutral (and right) terms to use.

Hopefully I've made myself clear. Your help would be greatly appreciated!