How do the Gay Games fight homophobia?

A Gay Games bid from Cleveland has prompted some interesting discussions on the role of the Gay Games in promoting human rights. What is a "good" host city for the Games? Should the Games only go to places seen to be "gay" destinations, or is part of the mission of the Gay Games (and similar events) to go to less obvious places? As FGG board members recently discovered at the site selection meeting for the 2011 and 2012 EuroGames, the question applies not just to the Gay Games.

Here's a discussion of the Cleveland bid from Queerty:

All things being equal, Cleveland should get the event specifically because it's not a happy gay wonderland. One of the more irritating aspects of the gay community is our tendency to think that we only exist in big liberal cities on the coast, but yes, Chelsea, there are homosexuals in Cleveland, too. If we're going to decry protest marches that never leave the gay ghetto, we should embrace the idea that the Gay Games is far more valuable as a teaching tool than it is as a moneymaker.

Note: Information found here about Gay Games IX bids in no way implies any opinion from the FGG about these bids or any preference for one or another bidding organization.