The gay/lesbian culture is not something we encountered in Key West. What was hard for us (as a family with younger kids) was the graphic nature of all the t-shirts in the store windows (sexually explicit) and the drug stuff everywhere. We did not see drugs....but all the stuff that goes with it we did see and again t-shirts with drug stuff on it. I'm certainly NOT a prude, but I had a hard time with my kids, especially my 11 year old DS, who was very aware of everything. Example...he wanted henna tatoo and one he could get was a couple (male/female) engaged in intercourse...not your standard "missionary position" either. There were several of those to chose from and they were prominently displayed everywhere. I could give several more examples but I think you get the picture. I think it would be great to hang out there and party with some adult friends, but I wouldn't go back with the kids.
Oh, by the way...the street we saw this on was Duval. We had planned to hang out, eat dinner and see the sunset festival, which I hear is awesome, but headed back to the boat instead.