I can't comment on how it was then, but I know first-hand how it is now. If sailors onboard pirate ships were anything like modern sailors, then such an openly gay culture would have a great deal of difficulty getting itself established. Any two shipmates wishing to partake in each other's "company" would take great cautions to keep from getting discovered for fear of meeting with a nasty "accident."
But see, now comes the funny part - sailors take a great deal of amusement in making each other uncomfortable, and nothing makes a straight man more uncomfortable than homosexual advances. To my knowledge this sort of game never approached actual sex (by even the loosest standards,) but I have witnessed perfectly straight sailors hugging, kissing, sitting on each others' laps, and even inspecting each other privates, all for the purpose of making the new guys uncomfortable.
The easiest was to be accused of being gay was by demonstrating so little confidence in your sexuality that homosexuality would make you uncomfortable. But don't you dare be SO comfortable as to ACTUALLY be comfortable, cuz nobody really means it, its just to mess with your head.
How's that for confusing?