When someone tells you he likes My Little Pony and you respond with “Man, you are so gay!” then that’s a problem. You are using “gay” as in insult, as if being gay were a bad thing. That’s the reasoning behind why many people think using “gay” in that manner is a bad idea. That works analogously for “retarded”.
That’s not to say you can’t express, say, disgust at someone liking My Little Pony. “Man, your taste fucking sucks!” is a perfectly alright response no one will have a problem with (beyond disagreeing whether My Little Pony is good or bad).
Again, I don’t want to ban people from using “gay” or “retarded” as insults. But when they do I will call them out and explain my reasoning.