I'm not fond of it, and do consider it very rude, unless used in fun. When joking with a friend and one or the other of us will say it with a laugh and a smile. But we both know it is being used in a joking way.
Gracie Ruth has only said it once to me, that would have been right before she saw her very short life flash before her eyes.

I was scolding her about something and she was back talking to me. She turned and walked away tossing her head back and forth and swishing her bum, still muttering under her breath. She stopped turn her head and looked over her shoulder at me, said, "Woof" (ie:Whatever) and proceeded to walk on. I got to her in about 2 steps, snatched her up, got right in her face and growled to her, "You will not talk to your Momma in that tone." I thought her eyes were going to pop out of her head.

I put her down and she was all wiggly and yammering around me. lol She behaved herself...for the rest of the day anyway.