"Blood and Fire" might've been "risky" in 1987 or 1978, but not by the time Phase II made their version.
I think making the "gay" episode an AIDS metaphor was a poor choice because it's too on the nose. It shackles the theme too closely to real world clichés in a way which limits how the audience can see it. It's ham-fisted. The script is a mess (for a dozen reasons I won't repeat here).