Chileans don't seem paranoid, or to have an inferiority, nor a superiority complex like many people. They're open, but not pushy. If you don't say anything to them, they'll leave you alone, but if you ask a question they'll try to answer it.
Santiago has a gay quarter which looked about comparable to the kind you'd find in an american cities. We were there during the day so I can't say anything about the scene, other than it isn't in the closet.
Oh, and they have the best food.
Highly recommend Chile as at least a place to visit. I could certainly live there.