So what if there are 3 gay characters, and there are 3 separate mods that each make one of the characters straight. Each single one does not remove representation, but having all 3 installed together would. Do you ban these 3 mods?

I don't know, I just feel like this is such an arbitrary choice. If you reduce the number to 2 gay characters in a game, with 2 different mods, is that still okay or should both be banned again?

Is it really a difference if you reduce the number of gay characters to 1? What if you split the mod up into two parts, one just removing all sexual remarks (effectively with the intention of making the char asexual), and another simply also adding hetero (so effectively making the char bi) remarks, and you then combine these two mods again to effectively make the 1 character hetero (official gay remarks removed, hetero remarks added)?

Sure, representation is great and I'm all for it, but I'm also for people being able to change whatever they want in their own game. In the end, it's only affecting them and no one else, which should be the prime directive of tolerance.