It's a blind spot for sure. I grew up in churches that sincerely believe that homosexuality is a sin and that God can change anyone. And yes, they absolutely believe that it is better to be dead than to continue in "sin" because "to die is gain" and you go to Heaven if you die forgiven. It's such a deep-seated belief, but I do see change in the church: it's slow, but it's happening, thank God.
If you’re interested, I’ve written further on this:
On why this is such a hard belief to change:
Why Do Some Christians Practice and Support Conversion Therapy?
How do they justify the damage it causes?
A summary of my experiences seeing this change: