@Sly: I've heard in high school (possibly even young adult life as well), a male being called 'cute' isn't apparently a positive thing.
It is similar to finding a puppy cute, I'd think.
So, it's as if to say, the girl calls the guy cute, but then goes off to instead spend time with the 'hot' guy.
I've heard this time and time again that a guy being 'hot' is better than being 'cute'.
Well, I actually like being cute and see nothing wrong with it, and cute is the compliment I most often get. The way I see it 'cute' isn't just about looks, it's also about personality and how you conduct yourself. 'Hot' might be somewhat about personality (flirtiness and seductiveness), but it's mainly about looks and looks only.
The hot guys can be the hot guys, but if girls think I'm cute, then I want to be the cutest damn guy in school/work/wherever.
Besides, when you think about it 'hotness' is more of a physical thing, a one-time thing, the 'cute person' more is relationship material.
And, obviously, better than being considered ugly.
So, I'd take cute as a compliment, even if it means in a 'puppy' kind of way.