Ultimately this going to be based on how you view it as a person. If you are attracted to someone because they look like a woman then that's hardly a case for homosexuality if you were attracted to them because they look like men then that's another thing entirely. Being attracted to someone who looks like the opposite sex does not make you gay. How you feel about actually being involved with a transgender on the other hand is completely up to you.
Without Doors and only H2H? Then he might not get passed 1. Midnighter's best quality is smilar to Spider-man's. That he can use pre-cog and distance to take out opponents far superior to him. if he's bloodlusted and locked in a close quater fight with people who have the stats to keep up and potentially better fighters he's going to have trouble.