I personally think it is very much overused, and improperly used. It's basically nearing the level of:
"T-shirts have short sleeves"
"No true scotsman"
-
It's not really a fallacy. If someone is a "democrat" and spreading ideas of worldwide anarchy and lawlessness, then they're not a true democrat. Technically, what I just said is a NTS fallacy, even though it's true.