I think you’re spot on there. Re ANWL and that song, I think from what I’ve read the intention was The Day The World Went Soft, but with the actual name chosen they made the 70s/80s schoolboy error of equating homosexuality to weakness.
Luckily the punk scene now is very inclusive, all sorts of characters, all accepted for who they are. The only problems/intolerance seem to be from people outside it looking in & frowning/tutting, or people with extreme political views, these being both far right and far left.