Ok well....I don't think that was that bad...
Bill & Ted is a racy and inappropriate show. No way around it, and you can't sugar coat it. Just like Family Guy, Bill & Ted pokes fun at EVERY race and stereotype. It's almost completely equal. As they say in Avenue Q, everyone's a little bit racist! If you don't like it, don't watch. It's not THAT bad...yes, a bunch of stuff might make you roll your eyes, but come on.
As for being homophobic, I saw none of that as being homophobic. It was reaaaally stereotyping gay guys in a very 2003 kind of way, which pretty much is annoying in this day and age. But it was all in good fun I guess. Slightly annoying and in bad taste but it was just humor...nothing homophobic. Just stereotypes. There's a difference between stereotypes and "___phobia".
*shrug*
Let me point out that NBCUniversal and USH are VEEEEERY pro-gay and completely supportive of everything having to do with LGBT. That performance is just an annoying stereotype, just like every other stereotype in the show (small annoying asian who can't speak proper English, and Latinos being in gangs/poor in Van Nuys). It's slightly annoying, depending on who you are, but what can you do? Don't watch.