Personally I think it's more a matter of wanting representation, but wanting it done accurately and well, and not just as a "humorous" stereotype to pander to the lowest common denominator. I've had lots of purely gay friends, I'm bi myself, and I must say I find the way a lot of gays are portrayed in media very insulting. Personally I'd like to see less "GAY" and more normal people who happen to be gay. False and/or derogatory representation is worse than no representation as it does nothing but reinforce the negative stereotype and make a joke of something very important to a lot of people.
You say that, but it makes me wonder how young you are. Because trust me when I say, when you had NOTHING (except for subtextual behavior/dialogue from otherwise canonly straight characters-- watch the Celluloid Closet sometime), even shitty stereotypes, even gay villains, even the awful 'prison gay' tropes made you excited because oh my god that's actually a gay character on my TV/movie screen! Even the most stereotypically 'gay' characters still showed people that we existed.
Now I agree, we're at the point where it's time to get better written, more well-rounded LGBT people on screen (hell, some LBT people at ALL), but if you're trying to say that "no representation is always is better than stereotypical representation", I guess I'm gonna have to disagree. Even poor quality representation can spark a dialogue; and a show or game who includes an LGBT character at all is a show/game that is more likely to listen to concerns and do it better next time when their fans tell them they messed it up (see: Bioware's struggle to portray trans characters and how they messed it up, but still listened to the fans, and are committed to doing it better with DA:I and future games. Time will tell if they manage it, but isn't it better than never trying at all?).
Also what is a 'normal' person who happens to be gay, anyway? What does that mean? I hear that and I think "Gay characters(people) would be better if they were straight-passing and never ever mentioned their sexuality and could be imagined to be straight so as not to make straight people uncomfortable with their presence". Since you're bisexual, I know you didn't mean it like that, but I've heard enough straight people say similar sorts of things ("why do they have to even mention he's gay?" "Why do they have to force it on me?" etc etc), as well as gay people who want to shame other gay people for being too "obvious" or "flamboyant", and I start to get uncomfortable. I don't think LGBT people need to earn acceptance by blending in and acting 'normal', you know?
Anyway! Whew, that got away from me. I promise I'm not trying to attack you-- just a couple things you and the guy you're talking to mentioned got stuff circulating in my head and I wanted to put it in writing while I was thinking about it.