Wow, Adaeze... I can't help but agree with every single point you said here. I always thought the same. The word "toxic" isn't a label that we should throw away freely to anyone who's "different" from us.
On a serious note, even when I once had a "toxic friend" (which was the label given by almost everyone around him), I didn't blindly put the toxic label on his face. As I tried to dig deeper about his "issues", I realized sometimes these people are just looking for ways to express their deep insecurities, and sometimes what we need to do is to help them, not quickly judge them as toxic human beings. Everyone has some bad and dark sides in them, some have less, some have more than average people in general. But it doesn't mean that we can treat someone as something disgusting that we should stay away from.
I totally agree that life is not black and white, and this way of grey-thinking is very important for a more balanced life. Thinking in absolutes will only bring more diversities in our lives as it will make us stuck in all-or-nothing cycles.