Almost certainly a proper technical term for the female organ(s) - consider the number of similar-sounding terms in both Latin and Germanic languages. Became a taboo word simply because it related to both sex and femininity - but many prefer it, finding that other everyday terms like "pussy" just don't have the right sound.
2) stupid/contemptible person of either gender
Only in America is this considered a specifically misogynistic insult. In Britain it is most likely to be heard amongst men quarelling.
I may have a cunt, but don't presume I am one.
It has almost replaced the word 'mate', often used in Australia to refer to people in a conversation when they can't be bothered trying to remember your name.
American feminist: I find that insulting
Sick Aussie Cunt: Piss off
Sick Aussie Cunt 1: Sup cunt?
Sick Aussie Cunt 2: Nothing much, cunt.