Freedom to be yourself.
That we can now openly discuss and recognize members of this community without threat of vilification indicates how far we've come in the exercise of personal freedom. That this community of fellow sentient human beings requires a label at all is an indication of how far we still have to go in the exercise of personal freedom.
I think its an indication that society is moving away from the religious control of the church and is setting its own rules or expectations.
Classification of people by appearance or actions is not inherently wrong.
For example, we discriminate against people who are vertically challenged---under 48" tall--- when they want to ride certain amusement park rides.
And we discriminate for certain individuals who are mobility challenged---wheel chairs---by providing special accommodations for them.
I think the value of the distinctions involved here make it clear that our previous understanding of sexuality is inadequate at the very least.
I see "LGBTQ" as an easily recognisable acronym for a group, even though the group is comprised of individuals. The people who form that group may relate more to one of those labels -- perhaps more than one -- than to another, yet they share a common cause.
As a focal point for individuals -- whether actively involved or not -- the LGBTQ community is succeeding in making the wider community aware of their particular needs. They're making progress -- sometimes politically where gay marriage is accepted or when the military drops it's "Don't Ask Don't Tell" attitude, or in the community generally when fewer people regard them as sick, queer or just different.
The LGBTQ community is experiencing the same transition that feminists and anti-racial groups have battled. Like them, they are making progress but there's still some distance to go.
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Just the same, I'm not too sure about including that Q in the acronym. It may be defiant but it can only prolong the stereotype for some.