Take the whole thing with a pinch of salt until you see one of these things in print, because it looks like a publicity ploy to me.
I let the whole thing rest for a while, before checking back on the story this morning. Lo and behold, the whole site has changed its appearance, and the 'except of Genesis' given on the site is now completely different. Instead of being about two female homosexuals, 'Aida' and Eve', it now contains a version of the evolution story. I therefore conclude that there is no 'Princess Diana Bible' project, just a website that is actually intended as a joke (not a terribly funny one, but a joke nevertheless). I note that one of the comments quoted in the sidebar says 'Congratulations on a hilarious parody site'. The top banner of the site now reads "A gay Christian is like a black Ku Klux Klansman". Hardly an endorsement of so-called 'Gay Christians'
So who is behind the site? I don't know, but there are two options, firstly, an atheist homosexual, or second, a Christian with a rather tasteless sense of humour. You pays your money and you takes your choice.
Do I think that it is perfectly fine to mess with the text of the Bible like this? No. At the same time, we Christians ought to be careful that we do not take what is obviously just a rather tasteless joke seriously. There is no 'Princess Diana Bible', just the 'excerpts' published at the site. It will not appear in print, and Christians getting worked up about it is simply playing into the hands of the publicists, and making themselves look silly.
The clues were there from the beginning: The WorldNet Daily headline read: "New 'Bible': Heterosexuality is sin". No-one actually believes that, and so we conclude that the author does not, and the content of the site as it has evolved demonstrates this. Christians should therefore ignore it and at all costs avoid becoming hysterical on the matter.