There's an expository scene early on where Verna and Tom are talking and Verna accuses Tom of hating Bernie just like everybody else because 'he's different' and considering him a 'degenerate' and 'scum'. So we're not shown any homophobia, but in Verna's mind there is homophobia.
I'm not so sure it was homophobia. They didn't like Bernie because of his character, a shiftless grifter.
People in the film keep calling a Sheeny, but mostly, I think you hit it with this:
Of course, Tom (and presumably others) actually dislikes Bernie for his character and ethics and not so much his sexuality.
The best example of this is Caspar, who doesn't care about The Dane's sexuality, and dislikes Bernie for ethics.
Someone else in this thread touched on it: deviant sexuality wasn't a big issue in the 20s, especially in relatively diverse/urban areas.
Be sure to proof your posts to see if you any words out
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