hehe, you're assuming they are good parents

sadly the percentage of good parents seems to be going down

And his name IS NOT A SEXUAL INNUENDO! Sexuality DOES NOT make it a sexual innuendo. I don't see the problem with someone being proud of their sexuality, that's fine. I agree that making a point of it all over the place is annoying but just being his name doesn't mean he's going in every game shouting how awesomely gay he is or whatever. I don't care about a name so long as the person themselves aren't going around just constantly talking about it. I would be fine if there was a gamer named "TheSTRAIGHTGamer" or whatnot.. that's not a big deal either. I bet you that they honestly wouldn't ban that name... and I bet you 90% of the community wouldn't have a problem with it just because that dood is straight.
Sexual Innuendo and Sexuality have one very important thing in common, and if you can't tell, it is sex. Now, people can buy games for their kids based on the content of the game, because parents can control if their kids play the games or not. It's not MS' fault if you are a shitty parent. However, the second you take that power out of the parent's hands it becomes MS' problem, and they don't like to have problems. They don't care about weather it is offensive to everyone or not. It was offensive to enough people and enough of those people took action to make MS have to do something about it.
The X-Box live community seems to be one of the ones with the most amount of bigots I've ever seen/heard. And thus, they fail. Why are they like that? I dunno.. the other problem I still have is Microsoft claiming the bullshit of "don't want kids to experience it" when 99% of their library is aimed for people like.. 16+ (like mid-teens and up). It just seems stupid to me. Ah well...
How do you even know this? I find it hard to believe you have spent enough time on xbox live to make any sort of claim like this. Of course i've come across my fair share of snotty, 12 year old bigots, but nothing to that extent. I guess that is because the people i roll with are usually the ones that win, so i don't often have to deal with shit talking coming at me.
That comment about MS banning TheStraighterGamer or whatnot is bull, they wouldn't have banned them, I should see if I can get a friend when he gets his 360 to make a Live Account with one of those names or a name like it, I guarantee he wouldn't be banned.
Because of MS bans names, and filters words, there isn't a whole lot they can do. They can ban a word like "Gay" from gamertags, because by and large that applies to only one thing (that being sexuality, not something they want to deal with), whereas a word like "straight" could mean many things based on context (something like my friend "Straight Shooter" vs "Thestraightergamer"). For something like Thestraightergamer, it would have to be complained about, because it isn't something MS can just look at, which is how i imagine thegayergamer got caught. There is only so much that can be done by anyone.
And what's your problem with Kotaku, Makelith?
Because i know all too many people that take Kotaku's word as law when it comes to anything video games. I can hardly open up a video game thread without seeing at least one kotaku link. Yes, its a handy gossip site, but good god. People that come in to my store ask me if i have read the latest kotaku entry. I tell them no, because i prefer a source that is actually credible when i am going to get my hopes up over a game.
Besides, one of the writers admittedly e-mails Jack Thompson in his free time.