1) You "read that story as" means there's openings for different interpretations. Why is my interpretation invalid?
It's not! I'm just telling you how I see it; what I think it means.
2) If back then, hospitality was more important than not betraying your daughter's innocence to a mob of rapists, and these are the people we're turning to as role models, surely we can do better.
Times were different back then. As I said, he realised that someone was going to get raped, and so thought it better that it be his daughters (whom Jewish law would force the rapists to marry) than his guests. I'm not saying for a minute that we should have the same views on the father/daughter relationship at all.
Problems with using this book as a basis for the moral code of our society is when we allow ourselves to ignore most of it as outdated and ludicrous, but other parts cannot be questioned. You can't call it God's perfect law, believe that it is so, and cross out most of it and just read the parts you like. And if it's not God's perfect law, people must stop using it to beat gay people over the head when we're all just as guilty of violating God's perfect law.
We know that God's intention is the perfect law. We also know that the Bible is an attempt to write that down. Bits of it are corrupted, bits of it are outdated, and bits are just plain made up, but parts of it are about as close to a direct message from God as you can get. That said nobody should use it to beat anyone about the head, unless they're forgetting the part about planks and splinters.
Either be consistent and true to The Word, or we should not act like we represent The Word. In other words, these "family values" people need to stop thinking that they are God, and stop casting stones at gays.
See above. We're all trying to act as God wants, but it's very difficult indeed to find a consensus on what that means.