This is something that has recently become a concern for me so let me explain a little.
When I first started Second Life I made a decision to be honest about myself, in my profile, who I am which is a gay male wearing a female av. I figured why lie about it. For the first year I have had no problem but in the last 4 months I have been subjected to many comments in open chat that I am a perverted so and so and even a pedophile (I have no idea why people equate gay with pedophile). Second Life has become a very uncomfortable place for me.
I realize that Lindens Labs has no control over resident's opinions of anyone who might be different from themselves but I do not have this problem in real life. It is endemic here. Many feel free to engage in gay/sexual identity bashing here and think it is funny to boot. I do not share their sense of humor.
I know I can A/R everyone but then I would be spending all of my SL time sending reports which is not my idea of fun.
Does Linden Labs have an explicit policy forbidding harressment based on sexual preference? If so I haven't seen it and it certainly isn't enforced as all I have to do is go to any Welcome Area and be subjected to endless abuse.
If you have a policy against such behaviour I certainly would like to see it more publicized and enforced. If you have such a policy I suggest you strongly enforce it.