I have to put my .02 in. While I don't like sex in my campaign, it's going to show up every time a pc flirts with a bar maid or if there is any innuendo (and if you've played for a while innuendo always shows up). With that in mind I run what I know: I'm heterosexual and so are my players so we go in that direction. Having played in a game run by a homosexual friend I have to say I didn't notice anything weird or strange. Homosexuals in a fictional world isn't really that big of a deal. If a game has gratuitous sex, heterosexual or homosexual I'll walk because that isn't what I'm into. But gay undertones like a character flirting with the young apprentice of the black smith isn't going to ruin my game or make me start an inquisition at my table.
On a lighter note when we were a playing Pathfinder society scenario: City of Strangers I & II, Ms. Feathers (a Transgender prostitute) was awesome and a Male Cleric of Calistria had a little off screen evening with him. It didn't cause the earth to become a lake of fire, blood to run out of the sinks or cause to gad flies to invade the shop we were playing in, we just went with it and had a grand old time.