No, this isn't a link to scandalous photos. It involves academic freedom. I think it would be fantastic if the university had to back off on this one--apparently the president has had to disable her email, because she was getting inundated with defenses of Hoppe--because it would show that the PC forces are not invincible. And for those of you thinking, "Give me a break! I'm supposed to get worked up over a guy who goes out of his way to offend gay students??" the obvious response is that academic freedom (and protection of speech in general) is always about statements that many find offensive. No one needs the ACLU to defend a calculus professor's ability to teach derivatives.
If Hoppe gets fined for making a positive statement (people are arguing over whether it's true, but the fact that it's even debatable shows it isn't clearly wrong) simply because it is offensive, then other professors at UNLV (and elsewhere) will once again see that you can't say certain things in America. It doesn't need to be this way, and if just one or two professors emerged unscathed, the spell could be broken.
(Incidentally, from a free market anarchist POV, there's no such thing as "the right to free speech." But Roderick Long has dug up the by-laws of UNLV, and "academic freedom" is a contractual guarantee for their professors.)