cool, thanks for sharing.
in my experience, shifus and students don't make any issue out of gay/lesbian and don't talk about it. but i do observe among TCMA folks some gayphobic teasing, most of which is light and schoolyard stuff that boys may do. also one of the ways folks are dissed is by calling them sissy or basically any other word that represents femaleness in a negative way. calling someone "gay" also to mean "weak". i have observed this on the forums here, as well.
what i find ironic (particularly if they are asian men doing this), is that in the U.S. media asian men are not portrayed well and in fact feminized (they are portrayed as weak, feminine, nerdy, and have small *feet*.. except in kung fu movies.. and yet still, the predominant stereotype is not positive). they don't realize that their way of degrading others is actually also the very same language in mainstream U.S. which put asian men in a subservient or "feminized" position. being asian myself, i find the language problematic, but i get used to it.
most don't really get into the games and just focus on training. i think the primary focus is on transmitting our beautiful art and culture and during these moments of training gender and everything else disappears. it's just the martial arts.
i have had both excellent male and female instructors. if someone is detail oriented and can break down and explain things well, i thk they are qualified whatever the gender. in my exp, most schools in TCMA are majority male with a few females in the class.