Judging by the above, he is very influenced by the post-WW2, nazi-influenced western ideas about LGBTQ people, rather than the pre-nazi Berlin progress.

I didn't include it as I felt I was already getting very wordy, but Huneke mentions that the book was widely criticized. It's moreso that the state sponsored a study at all that was the groundbreaking part. Quoting Huneke on page 209,

True, the book had numerous problems and was widely criticized. One Stasi report noted that, "among hetero- and homosexual individuals there is an overwhelmingly deprecating view" of the book. Not only had Werner devoted the vast majority of the text to gay men, as Ursula Sillge, among others, complained, he had also invented a nonsense term "lesbicity" ("Lesbizität") with which to discuss female homosexuality. Yet, for all its flaws, the book signalled a rupture with decades-old taboos.

And even though he was cooking up some wack ass ideas, it was the first domino in a serious of efforts towards public education.

Other authors pressured the regime to adopt school texts that addressed homosexuality more tolerantly. A doctor in Jena campaigned for the publication of a book that would help the parents of gay and lesbian children. Although authorities initially resisted his entreaties, by 1987 his manuscript was under consideration at a press.

A state sponsored text aimed at parents of queer children! In 1987!!! This is so wild to think about given the tantrum the right wing in the US is throwing over the mere implication that children could be queer 40 years later.