Thoughts on Inclusion

As I was browsing MSNBC this item caught my eye and I caught myself asking how "don't ask, don't tell" continues to be relevant.
I transferred from active duty before the "don't ask, don't tell" policy was implemented, and I never served on a... co-ed?... ship. I did serve with a few gay sailors over the years, but their issues generally did not draw attention.
As I understand the policy, the military does not seek to learn of one's homosexuality but if it does or if... heaven forbid... one is homosexual and does not remain celibate, then the crap hits the fan as it has in years gone by. So... they pretend not to care that you're gay so long as you remain deep within the closet? Apart from the dishonesty of that policy, does that not tend to exacerbate the often-used charge that gays are more liable to blackmail?
What is the downside of simply accepting gays in the military? Really now... not the hysterical stuff... What happens if the military just accepts that some of its people are gay?
Back when women remained in the rear and didn't deploy in ships I accepted as a given that having an openly gay guy in a forward outfit could be problematic. Now, in the post-Richard Hatch era, I'm just asking... what's up with that?