Dead Man Typing said:I always thought that the profile section of Xbox Live was to help you identify people you've played with before, because sometimes remembering someone from just their gamertag is too hard. So a little information about their line of work or hobbies outside of gaming can help jog my terrible memory.
"Oh yeah, you're that Lesbian I was playing with the other night" probably isn't how someone wants to be identified, so why identify themselves like that. Unless I'm trying to sleep with you, I don't need to know if you're gay/straight/whatever, just that you're a cool person to play games with and talk to while I play games. So age, line of work and a few hobbies outside of gaming is as much info as anyone would require, as far as I can tell. Basically a few conversation starters, or nothing at all.
Microsoft isn't stopping people from sending private messages to other users, or voice chat or video chat, there are plenty of ways to let others know what side your bread is buttered. Puting your sexuality in your profile seems like you're trying to use Xbox Live as a dating site, and that's not what Microsoft wants it to be. They're just trying to keep all their users on topic.
there are posts addressing that this is clearly not the intent of the person in the OP.
the bigger issue is that nobody reads the TOS, and that the girl probably didnt know that you couldn't list your sexual orientation in your profile. most likely, its to protect them from the racist/homophobic/teenage users of XBL!