Yes, if you label every reason to keep the world and his dog out of your business "dysfunctional" then the whole thing reduces to tautology.

Well, yes. I read his argument as less of an argument in favour of openness and more a sort of a whinge about how people make too much of a big deal about certain things (like homosexuality) which then leads to people keeping those certain things secret.

I'm not sure if that's what he intended with his argument, but that's what I got from it.