Today, I was dancing with an incredibly sexy man at a club. He was grinding on me when he leaned over and said, "If I was straight, I would make you my queen." FML
He's actually playing the game... some girls fall for that trick and become friends with the dude, and then end up sleeping with him by the end of the night.
Play the game, know the game.
So no #1, not a compliment, he was trying to get closer to her. Girls feel okay around gays since they won't constantly come onto you, but that's the trick in what he's doing.