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It's been about a year since I placed a FB ad but I was under the impression that whomever is placing the ad targets an audience not FB itself. If that is still correct then whoever was placing the "coming out" ad was acting more like an observant bartender mentioned in the article rather than an intelligent algorithm.

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This is exactly right. I mean I think Facebook is as creepy as the next guy, but this article makes the unsubstantiated claim that Facebook guessed his orientation. Unless they have some secret new interface for their advertisers in this case it's unlikely. That said I'm sure they could predict this with a high level of accuracy if they wanted to.

You are not entirely right, the advertiser chooses what audience to target but only Facebook knows exactly who is in that audience, the advertiser probably was advertising to people who support gay rights, etc.

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