I think what is more important is that those of us that act in a more conventional way let folks know that we're gay / bi. That serves to bring down stereotypes more than anything.
Folks that are flamboyant, femmy, outlandish, perpetuate an image that only REINFORCES stereotypes.
That being said, if someone smoke, I sure don't want them on my payroll. They get sick. They smell bad. They spend time smoking, and so on. Same thing being said for fat foks. More days out. Less productive.
Let's say someone applies with me that has purple hair and a nose ring. Like it, or not, that person will not get the same impression for the company as someone who is clean-cut, and articulate.
It's important NOT to be all-accepting. Clearly, we can't have women in the office in halter tops, men in short shorts, or folks smoking, or farting, or whatever. My point being is that at some point we have a view of what's reasonable. E.g., wearing rainbow colors and acting like a fairy to our customers is not the image many companies like to present. That's just the real world.
Now, if a person wants to tattoo themselves from head to bottom, they should be allowed to. However, an employer is not obligated to present that person as a representative of his company, nor to give that person a job. That's not prejudice, but, more choosing the sort of image that a company wants to convey to the public, and they have every right to do that.
This has been tested in civil law. E.g. Hooters. Hooters does NOT hire guys to wait tables. Hooters does not hire fat girls. We go to Hooters to see scantily clad women...and see some Hooters. That is THE BUSINESS of Hooters.
Screaming prejudice, and to be all-accepting is nice rhetoric, but, not reality. You wanna' paint yourself purple, fine, but, that doesn't mean I have to associate with you nor give you a job.
I've been discriminated against by small folks, time and again, but, it's the world in which I live.