When in-game on GTA IV and you use the faggio, be warned, you may be insulted, for an example see the real life comment i heard once...(made me crack up)
"Heh. What a faggio..."
Secondarily, It can be interpreted as a clear insult directed at the effeminate owners of such modes of transportation (see artfag).
That faggio owner certainly looks gay slathered in beigecream
3. a word i got a lecture for inventing because minors around me began using it even though it was funny as heck and just a freakin' joke