It's not that homosexuals do not posess "moral values", it's just that thier set of values differs from that of the church. Whether this is wrong or not is irrelevant, it's thier school, so they get to make the rules.
You second statement has nothing to do with the issues. We are not talking about a "good Christian life" here, we are talking about having the qualifications to gain admission to a private school. Far be it that I actually defend a religious group, but they are right.
If we all have the right to free speech, then the church should have thiers as well...