Welcome to the club Carrier of Hope.
You're absolutely right about the homosexuality in a lot of the FF villians as of late. It seems that they forgot that we look for strength in our villians as we do in our heroes. I don't like a villian that doesn't want to get his hands dirty, I like the type of villian that will hurl himself down from the roof of a cathedral, sword in hand, and pierce one of your characters ending their life.
Say what you want about Sephiroth, but that scene where he killed Aeris
defined him as a villian in my eyes. As much as I myself felt for this girl's death (who was pretty much always in my party), I also felt a certain amount of respect for a guy with enough balls to give you even more incentive to kill him, after he knows you already wanna kill him.
He is cold and cruel, as well as he is smart and masculine. Square needs to tap back into these types of villians more often.