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The bribery potential of those officials violating the laws they're publicly supporting is the problem.
No such problem were paying for sex is legal.
Hoover amassed significant power by collecting files containing large amounts of compromising and potentially embarrassing information on many powerful people, especially politicians.
True. Which is why it should be legalized and regulated. Very difficult to bribe someone with something they can just have whenever they want.
They said the same thing to justify banning gays from working for the government or serving in the military.
Because lies are a security risk. Which is a major part of why it's better to allow them into service openly. No secrets from the service, no leverage for betrayal.
The show For All Mankind did a good take on the problem IMO. Being gay wasn't illegal per se, but gay people could not be employed at NASA. They still joined, but they kept their orientation hidden. Then the security forces used the justification that gays keeping secrets were vulnerable to blackmail to go on witch hunts to seek and root out gays, and to defend the decision to ban gays from employment in the first place. It was a circular argument through-and-through. The base reason has always been prejudice. Didn't help that in the show there were real Soviet spies running around trying to find gays to extort for NASA rocket secrets.