Wow, the bioethical implications of potentially identifying the mechanism of sexual orientation are staggering. I wonder if / how long it will be before parents have the technical means—if not the legal right—to alter their child to be gay or straight through gene therapy. Or even simply selectively bring to term one orientation or the other.
It's interesting how the timing has an effect on the ethical implications as well. If we had this technology 50 years ago it would be a clear cut case of selecting the straight genes only. This discovery coming now means that the debate could go the other way (no interfering). Much of the world is also less friendly to homosexuality, to put it lightly. I wonder if they will eliminate it entirely?
I think that 50 years ago "homosexuality" would not have been "preventable" at least in the US.
However those who were untreatable were not treated kindly - it is still the era of institutionalization. We probably would have had a far more horrific solution to the precived problem than the one you suggest.