I do beleive that if someone lives a life which is sinful, and does not harm someone else by his sins, that he or she should have the same freedoms and rights that others have. If someone harms someone by their sinful acts, the state needs to judge and punish them.
As for their soul, that would be something that the person and their spiritual superior need to deal with. As I am not a spiritual superior to anyone, I can only support their attempts to reform their lives, and direct them to a priest, or religious superior in their religion. I also have the obligation to try and live my life as morally as possible, and not to judge the state of another’s soul.
In my personal case, and off the main topic. I had a brother who died of AIDS, he and his homosexual partner were the nicest people you could ever meet. Some of their friends are still friends of mine today. I am grateful that my brother and his partner who were raised Catholic and had turned their backs on the Moral teachings of the Church were able to return to the Church, and live as brothers (no sexual activity) for the last two years of their lives. They got pressured from some of their friends to return to their old lifestyle but sought a spiritual path rather than a carnal one in the end. I see them as very heroic. Of their friends who are still alive, they know I beleive that if one is not married one has no rights (morally) to sexual activity. However I don’t go into their bedrooms, or condemn them, (I do pray for them, as well as pray to remain chaste myself.) I see no difference between being a celebate heterosexual or a celebate Heterosexual.
One of the local parishes has a chapter of Courage, a support group that encourages homosexuals to remain celebate. I would also like to see such groups for young heterosexuals, and adult heterosexuals who have temptations against chastity.