I was reading this post on Crooked Timber, that font of proper good sense on all matters economics/sociology. (If you don’t read CT regularly (or at all), you should.)
The post links to the video below, which you might have seen from elsewhere, in which a gay transvestite Irishman, Panti Bliss, makes an important point about institutionalised homophobia and how it can gnaw at even people made of stern stuff. I thought the talk was poignant. I’ve listened to the entire talk a few times now. I can’t do better than Henry Farrell’s analysis, so I’ll just let you read the original post on Crooked Timber.
I would add that what Panti says about homophobia applies more generally to prejudice in society. This is what women go through in misogynistic societies (which is all of them); this is what Dalits in this country face every day; and what black people face in racist societies.