We read a lot of Enid blyton which uses gay and queer correctly and has characters called fanny and dick. I only change words if I can't read it out loud comforably. I certainly don't want to get into a discussion over homosexuality with my six year old and since he is an advanced reader I don't want to make changes while he is looking over my shoulder.
I think your home will have a stronger influence on his language than books for the most part though I do remember trying to speak like the characters in farmer boy once and my father telling me not to speak like an American.
