FWIW, I have the book from back when it first hit trades. Miller had not gone *completely* cuckoo nutso then, though there are hints of what's to come.
I don't remember any really major demonization of gay people in general unless you count the oft-done Ho Yay with the Joker. (I don't really remember what Bruno's deal was apart from looking butch and not wearing much up top besides tattoos.)