Gay people are just like everyone else. They do not want to sleep with everyone they see of the same sex, just like heterosexuals do not want to have sex with everyone of the opposite sex. Privacy and modesty can absolutely be maintained with gays in the military as long as everyone acts like rational adults.
Sexuality in the military of all creeds is just fine, but like usual neither heterosexual or homosexual preference needs to be flaunted from either side. In essence someone can identify as gay, but will be uniform with all other soldiers in anything other than what knowledge of the individual would be.