I have been following this thread with some amusement. In today's society, we get offended far too much. This chaps words to you were meant to get a rise, and he paid the price for obtaining it. While I would not personally resolve to violence over words, words can hurt. I find it much more entertaining to show the level of ignorance of the accuser. For example,

Him: hey are your a ******, or something?
Me: Hmmmm, I did not think I looked like a large bundle of sticks.
Him: No, I mean are you gay?
Me: Well, I tend to be quite happy most of the time....

Once you get them off of the game, the onlookers often realize that you are dealing with a dolt and an ignoramus. It is much more amusing to see the rest of the crowd laugh at him and takes the focus off of the situation.

Anyway, once you strap on the kilt, you are going against most of societies norms. You should always be ready with a witty response.