I've only really ever encountered "butch" being used in a derogatory way about any woman who doesn't conform to our culture's ultra feminine stereotype for women. It was thrown at women as a pejorative, as an insult for women who didn't conform or care about acquiescing to the demands of male attention. As such, I dislike it and wouldn't use it.
And the pp who commented about us becoming more reductive - hell yes, of course we are. People using "gender" to actually mean personality (because what they are describing is the definition of personality) but then equating it with sex are just ever more rigidly enforcing the sex stereotypes we were trying to move away from...
We should all be free to just be whoever we are, whatever sex we are. Saying that if you don't conform to our society's stereotypes for women means you're not a woman and have to switch box, or that if you're a man who finds blues, greys and sports motifs dull and tedious means you can't be a man anymore but have to switch to the woman box to match up with the stereotypes your personality most closely aligns with - it's horrible, and nonsense.
How is that not far, far worse than how things were before?
I dislike pink but do like colours some consider feminine as well as supposedly masculine ones, I like wearing practical clothes and dislike dresses but sometimes like tailored clothes, I enjoy creative activities as well as DIY, I don't aspire to have a knight in shining armour deliver a romantic marriage proposal, I played with toy cars and dolls as a child... None of that means I'm not a woman or need to switch box. It just reflects my personality as an individual.
Nobody should need to correctly align themselves to a box of stereotypes to be allowed to live as themselves - not least because if your only options are to pick between different sets of stereotypes you'll still never find one that actually fits the person you are as an individual. We're just who we are. It would be much better if everybody felt able to experience the world in ways that appeal to them, rather than feeling they have to conform to a set of stereotyped expectations or risk hostility and isolation.
I shop in the men's clothes section sometimes because I got sick of flimsy clothes covered in glitter and twee slogans. I prefer the practical options and better materials, but I can easily see why men would get sick of their only clothing options being dull colours and a selection of motifs on either sports teams, cars, sci-fi films, or alcohol brands.
Same reason I wanted to expand my horizons beyond glittery, frilly options - it's tedious and frustrating being restricted to some arbitrary set of styles determined by made up cultural rules rather than being able to choose from a wide variety of things that people can freely choose according to their own personality. There's no practicality in the women's section, but there's very little evidence of imagination in the men's section! It's sad and not difficult to see how people could end up deeply unhappy being limited like this for no good reason whatsoever.
I'm not interested in having to decide which set of stereotypes created in British culture in 2018 I want to conform to. I just want to live my life as myself, without being put in silly boxes or punished for opting out of that controlling bullshit.
I don't understand why we're not focused on getting rid of all the stereotypes in our culture instead of pushing people to pick a set of stereotypes to switch to. Life would be much better for everybody.