i played the game as a kid, too, and i knew what it meant. the "queer" was not the hero you make him out to be. the "queer" had to run for his life because 10 other kids were trying to pound him.
I suspect we could take a poll of 100 random guys who played the game as kids, and very, very few, if any, of them would say that being the "queer" was a position of honor. and i would wager that a vast majority of them would acknowledge that "queer" was meant to impart homosexuality in the teasing way that kids will call one another "***."
i think your argument is specious. and i expect that no amount of reason will change your mind now that you're invested in the position you've staked out for yourself.