Sounds like Rufus and Bubba from Prineville heard about all the depravity in Portland and made a special trip to "do somethin' about it". Their use of the "fag" term betrays a... shall we say less-than-cosmopolitan understanding social norms. At any rate, they are, as DianeT says, almost certainly insecure bullies.
Portland is a progressive and LGBT-friendly city, but like any other, one will encounter the occasional asshole. I would love to have heard the conversation that the responding officers had with these cretins.
