2: A synonym for something that is utterly repulsive, idiotic, or represents a lower stratum in human evolution.
Guy 2: I know, terrible towel of a decision. I better get tested asap.
" Yeah man...those colts fans were pwned by those terrible towels"
"Thats not a dishrag, its my official 'Eagles rally towel'!"
"Man you Philly fans keep getting gayer by the day."