gonna put in my two cents here as someone who joined back in 2020/2021 when i was a queer teenager trying to figure out my gender and sexuality.
i played a character who had a wife and several children, and had had other wives in the past.
she was also a vampire. i knew the risks of being that. the story goes is she had a troubled son who had tried to kill his siblings and his mother before, but my character was still trying to help him since she is incredibly motherly at heart. he lures her to some canonist place, i remember it being after pinemaw and on the road to Yong Ping, and they get into an argument. he gets a bunch of the lectors to come down into the place he's trapped her, and exposes her as a vampire.
i was prepared for this RP. i thought it was going to be exciting, perhaps she gets to tell the lectors the story of how she was kind of forced into vampirism to save her wife who ended up dying anyways, or perhaps tell the story of her current wife and children and how much she loves being a mother. i thought maybe she'd even get cured, which could be super fun roleplay. all that was thrown down the drain though when someone instantly killed her (powergamed to do it, too) for hearing that she was a woman having a wife.
there are so many more interesting ways to have those tensions between characters without racism or homophobia. because of the experience i mentioned, one of my trans characters was so incredibly in the closet that i hid all of his previous MA/FA's in fear of people finding out his old name and him getting killed for that fact, as has happened to my friend who's long quit the server.
the real life racism 100000% i am happy to see. several times had i heard people refer to Koyo-Kuni folk as "squinty eyes" or other really offensive terms to asian people IRL. like, straight up hearing people get upset with Koyo over their eye shape rather than the several war crimes they've committed LOL.
that's my thoughts for now. i definitely think that this'll help a lot of players get out of their shell more and go explore LOTC further, since many queers i know don't like going out of their circle for the fear of interacting with roleplay that mimics the exact issues they experience irl around their identity. LOTC is meant to be escapist from how stressful the real world can be.