God Thinks You're an Idiot
It all depends on the tone for me. If it's said playfully, I have no problem with it, but if there is serious maliciousness behind the words, then I'll be unnerved a bit.
I'm pretty sure there is NO ONE on Earth that is going to get offended by breeder.
Fag has been used so much, in so many different contexts, that it lost it's sting a long time ago.
People who get upset about it are more than likely just acting(key word) self-righteously offended.