Looking at Cyberus' sig I gather he is from the UK. I don't know wbout the rest of the UK, but where I'm from, saying that something (inanimate object) looks or is gay is slang for well naff, rubbish, etc. I don't think it is supposed to be offensive in any way.
Anyway, the logo is crap and is a total nightmare to do anything with artistically or graphically. The MOS butterfly is similarly bad, but at least has more possibilites and also importantly has a recognisable outline.