Warmav made a good point way early in the thread and it's this.....the words gay and ****** have taken on a new meaning in modern slang....and honestly most of the time they have nothing to do with sexuality. Meanings of words change and adapt overtime, and while those two words can be used to describe a homosexual person that does not mean that this is how it was used in that particular situation.
I call my friends ******* all the time, and it has nothing to do with sexuality. Essentially I am just calling them a$$holes. I would have to say that most of the times that these words are used in MMO it has little to nothing to do with sexuality.