Tribunal doctrine does forbid the biting of spears and the piercing of the second aperture.
Well, the sermons also say that the 'biting of spears' is still "practiced in secret"... :hubbahubba:
I'm guessing from the prevalence of non-gendered or hermaphrodite Daedric Princes, and the fact that there's not much gendering of professions (e.g. both men and women in the Blades, the Fighters Guild), gender isn't as much of an issue in Nirn as here. So from that I'd say homosixuality probably isn't too bothersome either. Everyone seems open about six as well - there are a lot of Daedric Princes who are concerned with six or [censored] or just hedonism, and even the more stereotypically 'good' Nine Divines have Dibella (even if the newer games would like to gloss over the sixual side of her). Then again, in some cases I can't see it being acceptable; specifically in the case of heads of Great Houses, who would be expected to take wives.
The last three games don't mention homosixuality outside of the sermons at all as far as I can remember, even though they have a fair few mentions of [censored] and necrophilia :rolleyes: Just a censoring/rating issue, probably.
Edit: er, in case you can't tell, that thing that got censored is the thing that Molag Bal is the king of. Haha it's in the lore but I can't talk about it.