Your argument is being espoused my most. However, the contradiction is no “public” “non religious” entity would be allowed to fire an individual for expressing pro homosexual activities. At least not without a court fight, which they would be sure to lose. So yes, this is a very much a free speech issue.
California has laws protecting cross dressers, Transgender and the sexually confused. The selective outrage is obvious, consider Bashir's vile comments and MSNBC's slow motion reaction.
One might wonder what percentage of the Dynasty's audience falls into the GLADD demographic? How do the wield such power when I doubt anyone from that demographic watches that show.