It really struck me as a missing scene moment, not even in so much as I felt emotionally cheated, I really just visually felt like there was something missing. The Gwen/Rhys scene kind of came out of nowhere and went nowhere and Torchwood isn't often edited like that.

I think you may have a point there about the gay action hero, yes. But I do think they like to show off and pat themselves on the back for having created a "sexually liberated action hero", and they're in danger of jeopardising that if they're not careful.