Squirt,
I think you're absolutely right. The product or market is online porn, and the niches are straight (for men), straight (for women), gay, bisexual, transsexual, and perhaps others.
I think what we're reacting to and the point we're trying to make with these straight webmasters is that they think straight porn = online porn and "gay" is a niche within that. They don't see themselves as a niche just as gay is within the larger online porn market.
And I really don't think we have all that much to be worried about so long as they keep pumping out stuff like Street Bait or Bait Bus. They don't understand us, they don't want to understand us, they just want our money, and unless they hire gay people to help them, they will always miss the mark.
Cheers
Dzinerbear