the reason i find it funny, is because i can imagine the movement it must have taken for it to become legal. and yes, sometimes i giggle when i poo. i'm really disturbed you knew that.
Any true follower of Hermaeus Mora knows all, even when he'd rather not.
Anyway, from a ethno-historic perpsective, homosixuality is really only frowned upon in the big 3 monotheistic religions (Christianity, Judeism and Islam). And to an extent Hindi. Its certianly not the favored maritial dynamic in most cultures, but there doesn't tend to be that strong a stigma against it. Since Tamriel lacks anything even approaching a Monotheistic culture, i don't expect homophobia ever really developed, as such there would have been no need for a movement to make it legal.