This event, by the way, was supported and sponsored by the Australian Government (the one that gets to keep its Queen), Qantas, Telstra, Parkroyal, Travelodge, Pepsi, City Search, Tooheys....
Obviously, in the aftermath, the homophobes are coming out of their respective closets in droves; in the sanctimonious garb of groupings like Earth Save and the Alliance Against Racist Vilification.
At one level, some protestors have given a pretty nifty spin to their spiel. Homosexuals, they say, agitate vehemently when they are abused or humiliated; shouldn't they afford similar respect to religions? basically that being PC cannot be a unilinear process.
The organisers would argue that Hinduism was the backdrop to their celebrations simply because of its background of tolerance. Or perhaps because of the sexuality of the Kama Sutra, the sculptures in Khajuraho, or even the unisex Ardhanarishwara. But tolerance does not necessarily mean a complete lack of brains though the antics of the fanatic righteous rightists may suggest otherwise. Therefore, in a culture where even associating revered deities with the S word or act (like M F Hussain's unclad Saraswati) causes considerable consternation, isn't this a case of intolerance towards the sensibilities of another minority (Down Ozwards at least) by another?
And think of the ramifications if other religious groups felt similarly violated. Fatwas and bin Laden's crazed goons would be bombing targets in New South Wales; you could even have the Janata Vimukta Perumana (if it still existed) going nuts, on in their case, nuttier; or Bible belt militia, wackier than Waco, setting their NRA okay sights between the foreheads of a couple of the brains (if we can call it that) behind the event (it may be interesting to contemplate the possibility that some of their ancestors had, in fact, been packed off from Old Blighty simply because of their choice of partners).

The problem, to quote Ally McBeal in a different context, is that when Holy gets too close to ass, it may tend towards the Assholy.
So therein lies the nub, the rub. You have to practice what you preen; preaching about being against discrimination somehow gets perverted when a community is, even if unwittingly, discriminated against, even if it feels discriminated. It just allows the lunatic fringe to enter the mainstream and wallow in controversies that may have been perfectly crafted to fit their narrow prejudices. Especially when rational people get offended; that's when things start getting really worrying.
The problem lies not simply with the event organisers and the visualisers, the rest of the gang, a lot of it also relates to the people who pumped in the funds to salve their collective consciences by being part of political correctness. Yeh Dil Mange More Pepsi wouldn't be particularly pleased if word spread and Indian Hindus decided to go on a Coke diet. Almost all of them have a stake in keeping the large Indian middle class well disposed towards their products, not disposing off them. And the current campaign against the show is aimed at a boycott of Aussiemade stuff or that proffered by the transnationals involved.
For now, however, things are relatively quiet. But to use a cliche that goes well with cricket, a game Aussies and Hindus love, more such events could well queer the pitch.