In other words, there's "let people mod whatever they like" and there's mods that are effectively a statement of an ethos, and not all ethos are worth letting your platform be used to broadcast.

There's also mods that are tools to give players more freedom, and mods that are fixes to correct what the dev sees as mistakes or shortcomings. The difference between "choose what color you want the flags to be" and "the flags are all blue now". The latter is a statement of a belief: "I think the game would be better if all the flags were blue".

The changes in this mod could be framed differently, like "gives player more granular control over NPC gender and sexuality". It could have been done in a respectful and open-ended fashion that doesn't play on harmful stereotypes. It could even be used to make the game "more gay" if the player chooses, then if some players choose to make it all "less gay", so be it. That would be fine.

But that's not what this mod is, and the intent behind it is fairly obvious. There's no reason to pussyfoot around this one with arguments about player freedom, that wasn't why it was made.