Maybe this situation came about because Britney Spears spurned Lance in favor of Justin T?
Remember that all three were pals in the Mickey Mouse Club, when they were mere tykes. And Brit is almost (like Lance) a Mississippian -- she went to school in McComb.
So Lance probably let his hopes (and his you-know-what) get very high, until BS chose Justin as the one to whom she would give her much-bragged-about virginity.
At this point Lance's fragile ego may have collapsed altogether, and he went over to the "other side" for revenge.
Or does somebody have a more intriguing explanation?
If your hypothesis made a bit of sense, revenge wouldn't be going gay for revenge, it would be bagging Christina Aguilera, also of MMC, and who carried a chip on her shoulder after Britney got all the attention despite being an inferior singer.
I still think Britney was Justin's "beard" and that whole "wardrobe malfunction" was just to throw people off.
Alot of thought there into the angst of the Mickey Mouse Club, but Britney didn't announce her whole 'virgin' manifesto until her solo career many years later. Lance (or for that matter Justin) would have been smarter to glance around the MMC set and find Christina Aquilera...a much more talented singer who I would bet will have much more career staying power than the current Mrs. Federline.
As for Lance's coming out, I hope he finds peace and happiness, and most of all, has invested his N'Sync money well.