As said below, the only purpose those words have in an MMO or on a gaming forum is insults and improper discussion. My sexuality has no place being broadcast on there, gay or straight.
that's nonsense. thinking that discourse in an mmo is limited to it's fictional subject matter is ludicrous. the nature of conversation doesn't change just because you're playing a video game, discussion can and does go in any direction. i'm probably going to be playing this game with my friends at launch and don't expect our ingame discourse to be limited to "dude who would win mace windu or darth malak". i'm of the opinion that less limitations is generally better than more.
people here are giving ridiculous extreme examples to try and justify banning benign terms like every homo on earth is going to join and act like the grand marshal of a gay pride parade. have you ever logged into an mmo and read "sup, i'm gay btw"?
let's also make sure no one says "black" or "african-american". you shouldn't be broadcasting your race in a game. bringing it up at all means you're just asking for trouble/insulting someone. if you think this scenario is different, please ask yourself why.