I have guy friends who get propositioned by men due to good looks. Yet they are straight and have always had female partners only. Just accept it as a compliment and try to work out some sort of an arrangement that would enable you to express your interest in the girl you fancy like mad.

The guy who made homophobic jokes at your expense does not sound nice; that is not the way to act on a crush (if he had a crush on you). I think you did the right thing ending that friendship.