DF being a game where there are straight, gay and bi dwarves is much better publicity than DF being a game about coming up with clever ways to cover invading goblins in poop.
This is highly debatable.
1)Many games like The Sims,Fable and Mass Effect 3 already allow the player to have gay characters in their playthroughs or allow the player itself to choose to have their character being gay.This means there is nothing wrong with DF having gay dwarfs.Maybe in the future adventurers could also either choose to be gay or not.
2)Even if Toady adds poop and urine in the game I doubt that he will make them useful.Probably the only interaction your dwarfs would have with it is to being able to clean them and nothing besides that.If a dwarf does get covered in excrement they will probably just get a bad thought and some extra description lines.
3)"Dwarf Fortress:a game where there are gay dwarfs" doesn't sound like bad reputation.The Sims received the same reputation and that made it even more popular.It would make DF a little more popular.DF can attract various kinds of gamers already:the kind that likes games with a lot of content,the ones that like to kill people in various ways in adv mode or the ones that likes crazy and large fantasy worlds with their own history.You just need to look at it in the right angle.