If the clumsy representation is just rainbow-washing then you wind up with some sanitized corporate gayness and when that starts influencing impressional young gay people then it removes a lot of the self-determinism that was a pillar of gay counterculture for decades or even centuries.

Instead of formulating their own identities in small cohorts linked by a common identity, they start looking up to stereotypes as depicted in the media and emulating those. That’s not exclusive to gay people, it’s endemic to young people in general in this age of corporate and algorithmic media.