Valve always uses lame excuses, but that guy overreacted. Homophoby? What the hell have to do some homophobic XBL users (and you'll really find them on every platform, anyway) with that developer? About Valve not wanting to admit a possible deal with MS, if this is true, the most intelligent thing to do would simply be to spread on a very large scale rumours that Valve is going to give up console exclusivity, even forging evidences of it that look plausible but be actually circularly self referencing, around a circle large enough to avoid immediate detection, and wait and see if they feel the urge not simply to deny, but also to appease MS and if Ballmer gets mad and threatens to sue them.