I think you're right about some gays responding with "if you think that's outrageous, watch this!"
In a pride parade in Minneapolis in 1982 there was a group of gay men walking behind a banner that said, in big red letters, "WE LIKE SUCKING AND FUCKING". That's all it said.
In a video of a gay pride parade from the 90s was a man completely nude except for a huge foam rubber penis he had strapped around his waist and crotch. As he walked down the street the penis bounced up and down in front of him. Behind him was a group of people, some carrying signs that read "FUCK". Nothing else. Just "FUCK".
In that same parade was a huge banner that read, "Stop Homophobia."