In Britain at least, queer is still a much-alive insult. It's complicated, because the popularity of the term 'queer' as an inclusive alternative to the ever-growing LGBTQI+ is growing among young people (in schools and university), but for everyone a bit older, it has a lot of negative connotations.
As the movie Pride rightly said "there is a tradition in the gay community that if someone gives you a label, you pick it up and you wear it and own it" - which I agree with (lord knows, the word 'lesbian' has been said to me in a derogatory way many, many times), but it gets flung around so much these days, and I'm not 100% comfortable with other people (even other LGBTQ+ folks) labelling me as 'queer', the same way I wouldn't appreciate being called a ****.
Tl;dr: it's complicated, and even the gays don't know.