Yes. In fact I think it should be a requirement.
See for a long time XBL effectively had a "Don't ask, Don't tell" policy, as in there is no actual exclusion of gay gamers but they'll face the ban hammer if they ever happen to bring it up. In frightening synchronism, XBL has followed in step with the US Army and retracted their "secret homosexual" policy:
http://www.qj.net/qjnet/xbox-360/xbox-live-code-of-conduct-changed-dont-ask-dont-tell-policy-nixed.html
I think this says a lot more about how close in mindset that particular Violent, Frag-happy, ultra-conservative, patriotic network has in common with Xbox Live (lol, I made a funny), but it seems the transition has been so uneventful that it doesn't seem to be all that big a deal overall.
Needless to say, this is a complex issue, but I think openness is the right direction to move to spite how many XBL users are located in the bible belt of the deep south. Of course they're going to make up some bullshit like "think about the kids" which his bullshit as XBL isn't suitable for little kids anyway and how can you take any "moral" stance while chainsawing someone in half.