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Yea Eorzeans have a fairly libertine attitude about sex in general it feels like, lots of places you can go where people are just making bawdy comments and jokes in the open. Not like you can start dry humping in the market square or whatever but it strikes me as at the very least some form of 'gay bar' could exist without having guards shut it down. There would reasonably be a decent bit of 'oh yea we don't wanna go THERE' stuff to deal with but I don't think any of the major cities (except Ishgard who has their own weird shit) would outright say 'no if you set this up we're gonna raid it Stonewall style'.