Gotcha, bro. I do believe that you have a couple of friends who went there a whole one time and saw some gays around the pool at the hotel next to them. I don't usually pay that much attention to what goes on at the hotel next to me, but each to his own. I certainly have never gone out of my way to 'look closer' at the next door pool.
Not sure what hotel they were at, but I can tell you with absolute certainty that if *that* was what was seared into their head after a stay in Key West, then they have problems.
If they didn't have fun there, then I can assure you that the 'gays' were not the primary problem.
It's simply not possible to not have fun there, if you're not an extreme homophobe who has his whole vacation ruined by gay guys frolicing at the hotel next door.