Lambda Legal has issued a letter to Blizzard (full text posted on Kotaku):
Although Blizzard is well within its rights to insist that players avoid referring to other gamers in an â€œinsulting manner,â€ Blizzard cannot issue a blanket ban on any mention of sexual orientation or gender identity. There is nothing â€œinsultingâ€ about identifying oneself as gay, lesbian or transgender, nor does the announcement of a guild for LGBT gamers constitute â€œharassmentâ€ in any sense of the word. If other players react insultingly to the mere presence of LGBT gamers, then Blizzard should discipline the harassers, not attempt preemptively to silence the potential victims of harassment.
There are some interesting comments over at the uber-gamesblog, though nothing which hasn’t already been touched upon before. There are a couple of idiotic statements there as well. It’s a shame that Kotaku is closed to comments from the unwashed masses, otherwise I might have posted a reply or two.