A faggot is a bundle of sticks used for fuel. It's an ancient term, but one I've heard of.
See 2 (a ) in link regarding it's use in the burning of heretics. Which is how E used it.
As always, the dictionary is our friend here. 
www.oed.com/viewdictionaryentry/Entry/67623
Having followed this saga since the beginning, under various names, I'm quite sure it would be a term used by E in this context.
E certainly does not strike me as a person prone to using it as a term of abuse. If E did, surely we would have seen it's use elsewhere, not just in the one context about burning?
(Also declining to pm a stranger on the internet re E)
The man is a weasel imo. He knows it was not used in a perjorative way. Truth is a stranger to him.