The Spectrum Rider said:
Then say, "Sexual orientation plays no role in my game." Don't single out gays as being somehow "about sex" and heterosexuals as not.
Well, I think if you say "I'm playing a gay halfling," that's about sex. If someone said "I'm playing a heterosexual halfling," it would be about sex too. Basically, whenever you slap *sexual on someone as a label, you're saying that it's about sex.
The easy way for the player to approach this would be to just play the character without having "Fildo Daggins, the Gay Halfling" written at the top of the character sheet. That being said, "there are no gay halflings in my world" is clearly a pretty goofy way to run a game.
DM: "You all are sitting in the tavern. A doxy, noticing your obvious wealth, comes over and, well, displays her wares."
Fighter: "I slap her on the butt, and say 'not tonight, honey, I've got dragons to slay tomorrow.'"
Paladin: "I lecture her on moral turpitude."
Wizard: "I'm busy rolling my scrolls."
Halfling: "Hot dang - I slip a gold piece down her bodice and lead her up to my room."
DM: "Ok, let me roll to... hey wait, your character's a girl!"
Halfling: "No spit, Sperlock."
DM: "But... but... there are no gay halflings in my world!"
Halfling: "So she turns down a whole gold piece!? I make it two then."
DM: "Hmm... er... well... I suppose she wouldn't. But you wouldn't want to, well, you know..."
Hafling: "So... I have to check with you to see whether my character wants something, eh? Do I want the chicken or the roast beast for dinner?"
DM: "No, no, I'm just saying that you can't be gay!"
Halfling: "I'm not gay - I'm just taking a floozy up to my room."
DM: "Hmm... well, I guess you can do that. But, I mean, what are you taking her up to your room for then? Oh... I see... you're going to rob her... I guess that's OK."
Halfing: "Psh. No - so I can take her clothes off. I wouldn't do it down in the common room, would I?"
DM: "What! If you're not GAY, what FOR?"
Halfling: "I already told you, I'm not gay. Obviously, if there are no gay halflings, I can't be gay. So I can see her naked, duh!"
DM: "And that's it?"
Halfling: "Oh no. Now I have her take my clothes off and have her put her..."
Paladin: "Jeezus"
Fighter: "TMI, man, TMI."
Wizard: "Just roll some dice or something."
DM: "Hm... er... OK, well, you all see the halfling go upstairs with the doxy, and just... nobody knows what happens after that, OK? THERE JUST ARE NO GAY HALFLINGS. Now, doesn't anybody want to start a bar fight or something?"