I thought it was amusing that I went to reply to this thread, and there were 69 comments. My inner teen giggled hysterically.
Users proclaiming their sexual orientation have been asked to change their gamertag/profile before, as have users that have used their real names as gamertags (both violations of the TOS; is it just the "gay" ones getting all the attention?). What does she mean by her "account was suspended"? People keep saying "she was banned", but they were also saying that about "theGAYERgamer" when all that really happened was the user was forced to change his gamertag.
For right or wrong, Microsoft has decided that sexual preferences are not permitted in gamertags or profiles. Violate the rule, and you should be asked to change it. Seems pretty straightforward to me. As long as they apply the rule equally to all, no matter what orientation you profess, I don't see the problem.
I don't expect Microsoft trolls through profiles looking for sex words all day, so they probably rely on peer reports. In this case, I'm sure it's likely that a gay/lesbian profile is going to get more reports and more notice than a straight one, considering they are a minority (from my made-up statistics).
I think her description of the treatment she received from other gamers is unsurprising, but undeserving and unfortunate all the same.
But to say Microsoft has it "out" for lesbians or "sided with the homophobes" is just trying to stir up controversy and make an issue out of it, when there's not. Terms of use were violated, it was brought to the service provider's attention, and corrective action was taken.