There were gay players on Rene's teams at PSU. Arguably the best player in her era, Kelly Mazante, was (and is) gay. That was no secret. Rene had no issue with her! As you state, Rene didn't want fraternization to the tune of romantic relationships within the squad. She didn't want any of the gay players to pressure the straight players into "experimenting". Rene also got on girls for dressing sloppily, like in plaid/flannel shorts and such.
Rene's views certainly weren't liberal, but she wasn't the oppressive ogre some make her to be, either. She was ham-handed in dealing with the issues, which allowed for speculation about what her intentions were, and then started to lose her team - and the admin - over it. She had a real good run here, but her time had passed, and it was time to bring in a fresh approach. It's too bad we can't remember her for the good stuff she did, and we tend to allow this issue overshadow all others aspects of her career. She wasn't my fave coach by far, but I'm glad she was here and elevated the program to the extent she did.
Now, it's time to move on again to the next WBB head coach. Gotta be some Pat Summit or Geno proteges out there, ripe for the taking!