You're absolutely right. I retract my statement. Though when did the term gay actually gain the additional meaning of homosexual? This is going to bug me, I'm going to go look this up.
Oh wow, this dates back to 1637. Apparently around this time it meant "addicted to social pleasures and dissipations. Often euphemistically: Of loose and immoral life"
But, with this definition I assume it was assigned by those of strong religious beliefs possibly.