It's true, even when Le Guin makes an effort to include queer characters, or writes scenarios that seem like they should be extremely queer, she does not write with a queer sensibility at all. I don't have a really good way of articulating that either, but off the top of my head, I feel like it's just that she isn't writing it as an insider so she doesn't have the deep visceral passion for why it matters. She writes like someone who believes on principle that homophobia is wrong, but has never been personally scared of it.