I hear it often in the Netherlands, so I presume so. I do find it hard to switch off the negative connotations attached to similar English words. Another example would be "spastisch".
Yes, it is used regularly in newspapers, for example. It always feels a little funny to me, since "homo" is not certainly not a nice term in English.
Also in German it's not a nice term. Although Homo is used by gay people as well, it always sounds a tad offensive when used by others.
The official pc term is homoseksueel, often shortened to homo. Homo has a few more negative overtones for being short and therefore lazy, but overall it's fine to use. If you want to be really pc, go with homoseksueel though.
They use it, when my local bartender says it trust me he is not saying it in a nice way !
People get confused about the prefix "homo" from Greek meaning "the same" (homosexual, homogenized, homonym, etc.) and the Latin noun "homo" meaning "human being" (homo sapiens, homo erectus, homo naledi). (Of course, people can also get confused when people say "homo" means "man" (used to mean the species) and some think that it refers to adult males. See Charles Rycroft, A Critical Dictionary of Psychoanalysis (New York: Basic Books, 1968): "The homo in homosexual derives from the Greek homos meaning 'same,' and not from the Latin homo , a 'man'; hence, homosexual can be applied to women as well as men.")