I agree with duckling in liking both the "queer" and the "spawn" part of it, and we do use it - in fact, we bought a onesie on cafe press that says QueerSpawn for his first gay pride day! However, I am also intrigued by the comments about not picking my kid's labels, so I think I'd have to say that while I'm comfortable using it in a joking way about my infant/young toddler, I doubt I'd continue to use it about him as he starts to become more conscious about his own identity/our identity/sexuality/etc. In other words, as soon as he starts having his own labels, I won't be putting this one on him... I think that works for me...
Of course, we don't actually *call* him queerspawn, and in fact, it was much more of a joke when he was either in-belly or just out-of-belly, and it really hasn't come up so much since he was a little guy, so perhaps we've already moved past "labeling him" with it without even realizing it?
The truth is, though, no matter what I label him as, he is the child of a queer family, and using or not using a certain term won't really change that much - I'll definitely share the term with him when he starts to ask about stuff like that, to let him know that's one way people refer to themselves/others, and yes, I'll teach him the differences between someone using it respectfully about their own community and someone using it disrespectfully about someone else's community...
Interesting how much a simple word like this provokes! lol!
(oh, and I'm queerspawn myself, though we never would have thought of the word in the 70s/80s lesbian feminist community I grew up in! lol!)
so that they hopefully get unsettled from visions of 'normality'.
... Although, I had never heard "gayby" 
