The word itself doesn't bother me - it does when non-homosexuals use it though.  On a personal level, I'm trying to learn to embrace the word.  Where and when I grew up, using it was not a positive thing - however, every now and then you may catch me using it as a descriptor.
Dyke 
*cringe*
Dyke 
*cringe*
*sigh*
DYKE  
*cringe not so much*
See?  I'm getting better at it.