But ... but ... but ... real rainbows are gradients!
(Disclaimer: Unless you live in a cartoon world, in which case please proceed with your rant.)
So when you think about it, it's the rainbow flag that got it wrong. If they didn't want someone to use gradients on it, they should have called it something else, like the primary/secondary color flag, or the diversity stripey bumper sticker thingy, or just "the gay bars."
And the gradient is even more inclusive, because there are even more colors! So every shade of diversity is included, not just the 6 they knew about back in the 80's or 90's. (Let's see, there's Gay, Lesbian, Bisexual, Transgendered, Transexual, Sneezy, Dopey, Doc, Prancer and Vixen.)
Of course, I'm just playing devil's advocate here. Personally neither offends me. I did have a friend who hated it when lesbians put it on their car's bumper "upside down" (purple on top). But if it helped them define themselves, or got them laid, I say more power to them. (Has a bumper sticker ever gotten someone laid?)
Or maybe the gradient variation is for gay scientists? Or gay people who work with optics, or spectrography? Won't someone please think of the gay scientists?
:)