It wasn't too early, no. In 1971, All in the Family's bigoted Archie Bunker discovered an old buddy was gay. In 1977, Soap was the first American series to debut a gay regular character, Jodie Dallas, who later would consider gender reassignment. 1981's Dynasty featured a gay recurring character, Steven Colby, who eventually ended up in a stable relationship with another man. In 1992, thirtysomething showed two male characters in bed together. Those are just commercial-TV examples; PBS and cable had done much more by the time "The Outcast" aired.So people, Could it have been possible? Or in 1992 was it still too early to say, "You know, you shouldn't be mean to anyone who doesn't match your ideals of gender and sexuality"?
Would TNG stating the pro-LGBT+ theme more explicitly have attracted controversy at the time? Probably; it was still early enough for that. But I'm not prepared to give the show credit for being progressive if it was so shy of controversy, especially considering that TNG was an established series by then, and in a position to take a few risks. More than two decades before, TOS, which had always been on much more precarious ground as far as ratings and popularity went, showed an interracial kiss and explicitly called out racism.
Hell, at the time Jonathan Frakes pointed out one way "The Outcast" could have been bolder, without even changing the script: cast male actors in the roles of Soren and the J'naii. That casting would have changed the entire tone of the episode. Imagine a male actor playing a character who demands that their female identity be acknowledged and respected. Now that would have been groundbreaking for the early 1990s! (And Frakes said yes, he would still have been fine with kissing Soren.)
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