It's tough for people who are not in the thick of it to really understand what it means. This is why people need labels. A label is the first step in understanding. We do it unconsciously, and we do it often. Male, female, gay, straight, Asian, African, European, young, old, Catholic, Jewish, Muslim, etc.
When people are trying to understand something, they try to fit it into categories they're familiar with, so they can pull from their experences. Like it or not, labels are always going to be around. So isn't it better to own a label and define it than to let it own and define you? I think its important for us as a community to discuss labels and find ones we're comfortable with. I know it can get frustrating trying to come to a consensus. It might even be impossible. But if we can't even find a way to define ourselves, how can we expect others to do it for us?
I think we each need to figure out our own contexts, and then educate people as best we can. Let them know that just because I am x and define myself as such, that someone else might define themselves differently. We are all individuals. No single term will encompass all of us. But its a start