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It’s just a word. People is fine too. Folks just sounds better.

If that were true then they would have written:

"Young folks, folks of color, queer folks". This is not the case.

How very astute of you. I was of course talking about folks sounding better combined with queer. This is subjective of course, but the writers agreed.

What does it matter to you anyway?

As one of them queer folks, it just rolls of the tongue easier.

It’s just another word for a group, same as people.