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They said they want to create a “positive modding community,” and nothing about a mod like that is positive. No one is obliged to host hate.
And nothing about this seems negative or hateful. Do you think changing a character to be homosexual is somehow negative or hateful? What about just switching their gender? Race? At what point does it become negative or hateful?
That said, I haven’t used this mod and I’m largely reacting to the headline here, so I could very well be missing something important. But if it’s just changing a character from LGBT to cis or whatever (or vice versa), I see no hate. AFAIK, nothing in it is saying being gay is bad or wrong.