I feel your asking opposite things. Progression and Accepting are essentially oxymorons of one another.
To be a top raiding guild, being one of the firsts to push new content you must make exceptions. Have a awesome dps that is a bit of a racist ? You got to deal with it. Got the most amazing person in the world that sucks at the game and cant improve ? No choice but to kick them. Sure you can easily find a raiding group that is pleasant, but it certainly will not be progression.
As for our server name. I run a FC with large LGBT population and they unanimously told me that they really like the name Faerie and they feel that many LGBT community members are attracted to the name. I played on Faerie for 3 years now and your actually first person I heard express disapproval to the name. I am not saying your wrong, but I do feel you may be in the minority of that sentiment among the LGBT community.
Either way be you make your own FC or join one, I hope you find acceptance in whatever you do. Faerie is a incredibly friendly and welcoming place and I hope you can call it home.