I admire Pastor Lively and have read The Pink Swastika. There is a contradiction in your statement. If Rohm's masculine/butch homosexuality was the main issue for Hitler's purge, why were not all the butch homosexuals in the SA targeted?
Adolf Hitler personally arrested Röhm and ordered the arrest of other SA leaders and other political enemies (estimates range up to 1,000 – most were not homosexual) on 6/30/1934 in a plot to eliminate them, not because of their homosexuality, but as rivals to his consolidation of power. Historians later called this political purge, “The Night of the Long Knives.” At least 85, and possibly ~200 were executed in prisons by 7/02/1934 after which the SA was disbanded. Most of the experienced SA homosexual leaders who survived the blood purge moved into other power positions in the German military. Rohm was a communist in all but name, along with most of the SA. The German industrial class was very uneasy with having Hitler in power because they believed their industries would be nationalized. Hitler assured them that would not be the case because he knew he needed them to build his war machine. Targeting Rohm and the SA was meant to assuage the fears of the German industrial class. Also, the Wehrmacht was unnerved about having a rival military faction in the SA. They would not be loyal to Hitler until the SA was done away with as well.
It’s more complicated than that. Most of the homosexuals who were considered untrustworthy and generally unworthy were the “fems.” Rohm was a loose cannon for a variety of reasons. He was too public, and he’d amassed a cult following which was viewed as a direct threat. But even that’s not the whole story. I recommend The Poisoned Stream for a better understanding.