I don't really think too much of the dichotomy. If someone is comfortable with the label, then they should roll with it. I have both butch and femme friends that proudly call themselves by those names. It only becomes a problem when it's applied where it doesn't fit. For instance, I don't like being called butch. I don't feel like it matches my gender identity, at least not with my understanding of the term. I'm not trans*, but I don't exactly feel like a woman, and most of the "butch" women I've met seem to still strongly identify as women. For myself, I like the term "boi" better.
That being said, I like everyone. Butch, femme, whatever.