Here's what most of you don't get.
We constantly make our sexual orientation public, in the simplest of ways. Speaking of who we are dating, talking about who we think is hot, kids, marriages, etc. etc. etc. It's a constant and natural point of conversation because it is integral to who we see ourselves as , as human beings. Sexual function is one of the basic features of the human body. You just don't realize how often you do it if you are straight because you aren't reading these statements as statements of a sexual nature.
In a gay community, saying one is gay is also not even worth a mention. In a gay community, one has to say out loud that they are straight, in order to differentiate themselves from the dominant group. Otherwise the people there will assume otherwise.
Xbox Live, and Home, and other internet social spaces are designed to make people feel as if these spots are an extension of their everyday lives. That's why they are successful and popular. When this woman is sitting in her own home and interacting with her own friends, it's not that she's looking to Live as a dating service. Who would do that? She's being herself. gay people "come out" to people every day of their lives - to family and friends and co-workers and acquaintances - to the staff at the hospital, to people in their apartment buildings, etc. etc. for all kinds of various reasons.
It's easier to say "I'm a lesbian" once and sum a bunch of things in one easy phrase than to explain that:
1. I'm not looking to date you, men.
2. When i say "girlfriend" it doesn't automatically mean I am male.
3. I may not have the interests or life experiences you automatically assume I would because I'm female.
etc. etc.
Using the information in her profile - that one has to dig into the menu to find - is just an easy way to sum up information for her friends and acquaintances that care to know more. Just as being married is only sometimes and partially about sexual activity or thoughts, so is the phrase "I'm a lesbian." It relates so much more than that.
If you are part of the majority, you have a normative advantage in that you don't have to think about such things. The rules ARE different for you in certain situations.
It's not in her gamertag, and not even in her motto where "innocent kids" will stumble upon it. And if parents are so concerned that their kids might see the word "lesbian", what the heck are they doing on Live scrolling through random women's profiles? It's just a poor justification for acting on one's biases.
Xbox and MS are not TRYING to discriminate - in fact they are trying to curb the abusive behaviors. But in doing so, the are unintentionally discriminating. They are trying to find a solution with the help of gay people to guide them. Good for them.
It seems as if profiles were for friends only, then we could write whatever we want in them. Perhaps that's the solution?
Can't we all just get along and play our games in peace?
j/k 
