Queer is an extremely popular word among Gen Z LGBTQIA+ community and is in frequent use by millennials and older folk. Most "older" folks like myself (GenX) in my groups use it. I remember a lot of talk back in the 90s among teens and 20-somethings about taking the word back. Just in my own experience, the show "Queer as Folk" gave a boost to that in the late 90's/early 2000's.
There's a generational divide, but in my day to say life with LGBTQIA+ folks in all age groups, it's an accepted word with positive connotations. I do not see that changing and I don't see the use of that word within the community going away anytime soon.
I think for a lot of younger folk, the understanding and acceptance of sexuality and gender identity along a spectrum has made "queer" an easy word to describe themselves. For instance, rather than constantly breaking down that you are bisexual, gender fluid, and Demisexual you just say "queer." It lacks the stigma that some of us experienced back in the day and I truly do not see the younger set changing in that regard at all.
Summary - I remember when it wasn't a happy word. I remember folks wanting to take the word back. I've watched the generations after my own embrace it and use it fluidly. I personally use "Queer." Just offhand, I can't think of anyone in ny personal life or communities who do not use it these days.