That was very inconsiderate of her, and I completely agree with you. What difference does it make what your friend's sexual orientation is? This has no bearing on what type of a godparent he will make for your son. That's ridiculous.
If your son would happen to be gay it has nothing to do with his name. That is even more ridiculous. Of course you will love your son no matter what his sexual orientation turns out to be. It sounds like grandma might consider him less of a grandson though.

I hope not.