Gay School Segregation?

I've not heard anything about this before, but right off the bat it sounds like a bad idea:

New York City is creating the nation's first public high school for gays, bisexuals and transgender students.

My initial reaction is to wonder how they will justify excluding heterosexual students if this really is a public school. It's unclear how the funding works:

The school is an expansion of a two-classroom public school program that began in 1984. A gay-rights youth advocacy group, the Hetrick-Martin Institute, has managed and financed the program since its inception.

My second reaction is to think this is a horrible example of self-segregation that does damage both to all involved. I mean, isn't this the anti-thesis of all the pro-diversity stuff we've heard about affirmative action? Those segregated will miss out on the benefits of normalcy (as well as the necessary socialization of being surrounded by heterosexuals). Those left in the normal schools will miss the important lessons of interacting with gays, instead suffering the traditional deprivation of thinking that no one they know is gay.

And New York City? Of all the places that ought to be able to have fully-integrated classrooms, a nice liberal urban place like New York should be at the top.

UPDATE: Check out Half the Sins of Mankind for more.