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I use the term mainly for girly drinks and fluffy little dogs. A brandy alexander is a foo foo drink; a shot of tequila is not. A pomeranian or shih tzu is a foo foo dog; a doberman is not. If a dog needs a monthly haircut, it's generally a foo foo dog.
There is also just plain 'foo' which is all together different than foo foo. Foo has to do with WWII UFO sightings (Foo Fighters) but also has a long and much debated history in computer programming.