Absolutely, there's a long history of the "in-group" co-opting culture from the "out-group" because it's seen as exotic and transgressive. Was it hypocritical for such a homophobic generation to idolize queer icons, only so long as they were cool and made good music? On a cultural level, yeah. On an individual level, depends on the individual and their specific beliefs and actions

Edit: Also my favorite Bowie album will always be Ziggy Stardust. Maybe a little basic but it just hits all the right campy, flamboyant, and always-incredible notes