Whether it's hypocritical or not, it's a giant alarm signal that someone has some insecurities of some form or another. Like I said, one can look at someone and not be turned on or off, and most particularly, if seeing two dude's kiss in a case of being turned off is the result of "thinking with your dick" then what about women? Certainly you're not attracted to all women. For the most part I'm not attracted to Asian women, but I wouldn't recoil if I saw an unattractive one kissing someone. For the average straight man, he should find both the ugly woman and a man equally as undesirable because men are attracted by vision - mostly. There's a double standard; hence an insecurity.
Insecurities are fine, but certainly not when you claim to be alright with the act being done in the first place.