That’s not how a lot of people saw it at the time though, was it? It wasn’t that uncommon in the 80s and 90s for people to regard same sex relationships as an unhealthy lifestyle choice which undermined the values and institutions on which society was founded - marriage and the traditional family unit - and gay people as doomed to a miserable, lonely life. A lot of people also genuinely feared that gay people would attempt to convert - or even prey on - their children, and that the acceptance of same sex attraction and relationships as valid and healthy would lead children and young people down paths they would later come to regret.
TBH there is some truth to this, however, it would not have been plausible then to argue that for example allowing same sex marriage changed or devalued heterosexual marriage
WRT to the fear of 'contagion'/conversion/preying- this again was never plausible, and we did not see the huge increase in numbers of young people saying they were gay, as we see currently with children and youg people saying they are trans. As for conversion/preying that again was never a valid argument. No heterosexual person would ever believe they could be 'converted' and predatory males are predatory males, whatever their orientation and we need robust safeguarding to deal with them.
So I think the 'its a moral panic, just like the 80s' thing while superficially attractive is really just a stick to beat people of my generation with. It works for a while. I initially approached this matter from a 'be kind' angle and accepted the grouping of T with LGB. But thinking about it more deeply showed that in fact there is no real common interest between LGB and T (I have yet to have it explained to me why there is, even during 'LGBT awareness training') and in fact what is being demanded by TRAs impinges on the rights and protections for women and girls and undermines rights for people who are same sex attracted.