Some time ago, I came across the idea that the term 'Hermaphrodite' is strictly derogatory. While I can agree with this in respect to actual humans- the term is typically used on trans-genders as a way to imply that they don't qualify as their gender identity. I do not, however, agree with this at all when referring to fictional characters, especially those that aren't even trying to appeal to reality. A very large number of furry characters are hermaphrodites, and I mean no insult by saying that.
The definition given to Hermaphrodite in this argument was something along the lines of an individual possessing fully developed and fully functional sexual organs of both genders. Even under this strict definition, I understand that most furry Hermaphrodites do fall under it, so it is not at all insulting or controversial to use the term. However, I take issues with this definition. A male does not have to have fully developed or fully functioning sexual organs to qualify as a male. A female does not have to have fully developed or fully functional sexual organs to qualify as a female. Why should a Hermaphrodite have to have fully developed and fully functioning sexual organs of both male and female to qualify as a Hermaphrodite?
All of that being said, I typically try to refer to people by the gender term they prefer, whether male, female, hermaphrodite, or otherwise.

I feel like I had more to say on the subject, but can't think of it. So, thoughts?