I like to see it that way, as an easy way to refer to everyone who doesn't fit within the cishet norm.
As others have mentioned, this used to be a derogatory term, so some people may still feel uncomfortable with it, but it has been reclaimed since then and I think nowadays we have long past the point where most people still see it as a derogatory word.
Also, it seems it annoys Graham Linehan, which is always a bonus: https://twitter.com/Glinner/status/1681657946529202182