Whoa, whoa, whoa. Everyone please relax. This is supposed to be a place where we can be united and enjoy talking about the shows we all love. So before we start sending people back to 1st grade to learn grammar, let's just calm down and act like responsible, sensible people.
SugarMeSpice, I really think you should take into consideration that perhaps some people have lived more sheltered lives, without a lot of exposure to people of alternate sexual orientations. For these people, understanding homosexuals can be difficult and frightening, even when it is in a distant relationship. In such a case, try to empathize with how difficult it must be for someone like this to come to terms with the fact that someone he thought he knew (like Mr. Squarepants) might be gay.
On the other hand, Whaleblubber, you should just step back for a minute and think about the situation. You like Spongebob, you think he's a good guy with a good heart and a fantastic personality. If he were to come to you and tell you that he indeed is a homosexual, would that change your opinion of him? I'd like to think that the answer is no. Regardless of how Mr. Squarepants gets jiggy with it, he should be judged according to his character and nothing else.