They are cartoons folks. It's like the muppet with AIDS; it's a puppet, it doesn't get sick.
Also, doesn't the "Paul Lynde" squid sound more like Larry Fine of the 3 Stooges?
Paul Lynde did do some cartoon voice work for Hanna-Barbera but I've never heard anyone alledge that the Mildew Wolf or Sylvester Sneekly were gay. I have seen homosexual (and lib) writers claim that Bugs Bunny and Elmer were a gay couple (into cross-dressing). These freaks use their attacks on innocent mainstream culture to break down barriers and subvert the opposition. It would be one thing if the creators were adding a gay subtext, it is another when they just read it into the shows.
No, they are just friends according to my 14 year old son who watches the show daily and nightly, permently. He is not gay either. It is a pretty funny show. If naughtical nonsense be something you wish, drop on the floor and flop like a fish. SPONGEBOB SQUAREPANTS!!!!!