To me the proper meaning of Homophobia would be an irrational fear of homosexuals. Eg: someone who is afraid to bend over in front of a gay person because they might get raped (I can't believe people are this ignorant and stupid, but they are).
On the other hand the definition of homophobia seems to have expanded over the years to include what most people would call bigotry. Basically just like racism except against homosexuals. Basically having a lot of ignorant views about homosexual people, and making judgements and discrimination's against them simply because of their sexual orientation. I agree that we need a new, more specific word to replace homophobia.
Luckily as the years go on these ignorant views on homosexuals (and bi-sexuals) seems to be diminishing. IMO you can't base someones sexual orientation on who they have or haven't slept with either. Lets take a look at a few scenarios:
1) Someone who has never had sex, but it only finds themselves attracted to the opposite sex. = Straight
2) Someone who has never has sex, but is attracted only to the same sex. = Gay
3) Someone who has had sex with both same and opposite sex, but only enjoyed sex with the opposite. = Straight
4) Some one who has been married to the opposite sex for years, and later discovers they do not have an attraction to the opposite sex any longer. = Gay
We could go through tons, and tons of these scenarios all day, and not even scratch the surface of human sexuality. It's complex and everyone is going to be different. That's why IMO judging someone based purely on their sexuality is completely ignorant, and stupid.
For all the gay, and bi-haters out there I have a question. What if 90% of the world was gay and you were straight? Would you try to convince yourself you were gay, and force yourself to have sex with the same sex regardless of how it would make you feel? Would all the "normal" gay people be just in judging you based on your straigtness; and discriminating against you?