With regards to "diversity" . . . original class of 2006 here, we had blacks, latinos, asians, and whites, 40% SDA, mostly other christians, including Roman Catholics (not just protestants), some mormons, and atheist or two (don't know if they were completely honest with the application) and two openly and accepted gay guys (and I suspect a lesbian, but if she was gay, she was closeted to my knowledge) - a good number of non-trads too.
I don't remember anythings about sexual activity with regards to policy at LLU when I was going there. It never came up actually. So maybe they have changed something, but until I see otherwise, I think this is a "SDN urban ledgend".