I've always expected to see it as a compound, though just 'fic' tends to be my term of choice (but that's when I'm talking to other fans/people who know that the fan- is implied). To be honest, I didn't really get the reasoning why 'fan fiction' is more respectful of us or whatever (though I'm happy to nod my hat to the reasoning of convention. And the OED, which as a non-US fan I choose as my compass ;) ); to me fanfic is a process in and of itself, with a completely different expected beginning and endpoint to what 'fiction done by fans' implies. But that isn't really here nor there - personally I'd use 'fanfiction' unless enough people want it differently.
no subject