The word "Faggot" developed from burning bundles of timber, which used by religious reactionaries to condemn someone to hell. Since homosexually is considered to be a sin, a homosexual is/was a faggot and it is typically used disparagingly towards homosexuals.

definitions provided by  Dictionary of the English Language

Faggot: Noun & Verb
Variant of fagot.
Noun
Offensive Slang Used as a disparaging term for a homosexual man.
Etymology
Perhaps from faggot, variant of fagot, bundle, lump, old woman.

so if its a variant of "fagot"...

Fagot:Noun
1. A bundle of twigs, sticks, or branches bound together. 2. A bundle of pieces of iron or steel to be welded or hammered into bars.

What also means a bundle, or pieces of iron bundled together? Hmmm?

Fascio:During the 19th century, the bundle of rods, in Latin called fasces and in Italian fascio, came to symbolize strength through unity, the point being that whilst each independent rod was fragile, as a bundle they were strong. By extension, the word fascio came in modern Italian political usage to mean group, union, band or league.

Fascio

Mussolini was leader of a group called Milan Fascio, which later developed into the Fascist Party.

The word 'Fascist' is used sometimes in an antagonistic manner to describe authoritarian reactionaries. But the word 'Faggot' is used by reactionaries deorogitively toward homosexuals, however the reactionary is better defined as a "faggot" than the homosexual because of their political ideology.

So when a reactionary calls someone a faggot, it could be better explained to them that they are the real "faggot".

I think this word has potential to be taken back, but, do we want it now?