Something about online gaming networks that everyone should realize; the only people who would check your profile to find out more about you are either stalkers or going to freak out about it.
Therefore, don't put anything in your profile (aside from name and general locale if you want).
And most importantly, the only people you want giving a damn about your sexual preferences are people you know and trust (in other words, people who might learn it through long-term friendship or casual reference).
So in a way this is her fault, not saying Microsoft shouldn't make an effort to fix this (as the numerous complaints for offensive profile were unfounded). But she should have realized after people started following her and coercing others to file complaints that "I'm a lesbian" is not something she wants in her bio. Childishly denying that the world isn't perfect is no one's fault but there own.
EDIT: After skimming through a few posts it seems like a lot of people actually think she was banned for being a lesbian, this is not the case. She was banned because many people took offense at her being lesbian and filed a complaint under the category "offensive profile". Offensive profile is the sole detail in these complaints and the accumulation of enough complaint reports will result in banning. People can reverse this but the system is automated (and don't say it shouldn't be, the incredible expense of having people to payed to look into these things with a community the size of Xbox Live's is far greater than the expenses embodied in the occasional improper banning).
