This is true, and your post struck a particular chord with me. Frankly, looking at what's currently being normalized under the 'queer' umbrella, it's a term I'd want to distance myself from as far as possible (I am bisexual, in case that's relevant at all). The normalization of fetish under that label and its quick assimilation into (and domination over) Pride has left a great many LTBT people feeling very uncomfortable. The more so, lest they be thought a 'bigot' if they say so. I teach young students and I listen to what they tell me.
'Queer' is a pejorative. At the time it was first used in a pejorative sense to mean those who were attracted to the same sex - around 1926 - it meant 'weird, strange, odd. Outside of what it means to be "normal"'.
Gay, on the other hand, had positive connotations even in its older meaning of bright and cheerful. Once it was co-opted from the context of 19th-century prostitutes, when it was used as an acronym standing for 'Good As You', its connotations for a much-maligned community clearly resonated.
The meanings couldn't be more diametrically opposed. Words matter.
People can call themselves what they wish. That's not the same thing as trying to impose particular labels on others, especially ones to which they object (cis, as oft-quoted upthread, springs to mind as a noteable example). Feminists might well have reappropriated and reclaimed the word 'bitch' in a supposed celebratory mode, but I'd no more call any woman by that particularly offensive word than I'd refer to a lesbian, gay or bisexual person as 'queer'.