Although Rod seems like a very bitter old man, I can kind of see how his view can be coming from a place of empathy (down at the bottom of all the layers of his sexual perversion of course). It is well known that the "true homosexuals" (aka gnc gay people) can really struggle, often from a very young age, with gender roles, socializing, dating, and dysphoria. I can see how he thinks transitioning can be a way to improve their quality of life, as undeniably some trans women and trans men do actually feel better off this way.

What I think it's interesting is that he himself has noticed that the rates of transition can very from culture to culture. He has observed that, in Asia, the transition rates of gay men are much larger, probably because of less acceptance of gay people ("ladyboy" is a term often used to describe asian trans women, the primary targets of his fetish I guess?). So yeah, I think entertaining the idea that gay men should transition to women instead of learning to accept themselves as gay is based on homophobia.