I have to disagree - I tend to do that -about it being "clear" that the Elliot character is gay.
Yes Rachel said that Kurt feared competition for "the lavender crown". BUT that was based not on any personal knowledge of "Elliot",
but rather the "flamboyant" costuming and make-up Elliot wore "as Starchild". Rachel "assumes" Elliot is gay, the same way many people watching Idol just assumed Adam was gay, because he wore some eye-liner instead of good ol' boy plaids.
Of course, Adam turned out to be gay, but the instant characterization of him as gay was just based on the stereotype that makeup = gay. In fact, the great majority of gay men hate makeup. Much of the dislike of Adam in the gay community stems from the belief that Adam further perpetuated the stereotype of gay men as flamboyant, make-up-wearing queens. Both the public at large, and many in the the gay community, missed that Adam was wearing eyeliner, and glitter, in the great tradition of rock (and show biz, in general) and not as a badge of sexual orientation.
So Rachel's initial perception of Elliot may or may not reflect reality. (Plus, those who have watched the four previous seasons know that Rachel does not have the best judgement when it comes to men.)
As far as Elliot's sit-down with Kurt, it really reveals nothing about his sexuality. What he says is Kurt is "the first gay friend I've made in the city that's not crazy…or just trying to hook up". Straight men, especially those in the theater, have gay friends.
If there is one thing I hope it is that on the next episode, when Rachel comes to Elliot's to stay the night, she (and the audience) find out that Elliot is NOT GAY.That would be a Ryan Murphy teaching moment. Plus it could better position Adam for possible straight leading-man roles in the future.
Happy 
so cute..
