I hear what you are saying. On a personal level, I have been friends with, and even rented from, people who were Lesbians. I take people on a case by case basis in my personal life. On the other hand, I once found myself on an elevator alone with Jim McGreevey, and refused to acknowledge his presence. But when we speak of it as a public policy matter, in broad brush strokes, I am concerned that the law preserves my right to take people on a case by case basis and does not require me to associate with those I do not wish to. To use your example, I would always want to stay well away from the flamboyant gay pride goers.
If I was in an elevator with that slimeball, I'd get off at the next floor - even if the floor was not the floor I wanted!!