I really don't understand your problem.
There aren't a lot of gay people in Russia.
The vast majority of the Russians doesn't agree with homosexuality so,
The government made a law to 'protect' the children,
I just have to speak up at this comment, though I was asleep during the majority of the debate sadly.
This is like saying that there have been more people choosing to be gay in the past half century and that being gay is "trendy".
Fact 2 makes Fact 1. The fact that a majority of Russians don't agree with homosexuality means that there are a vast majority of homosexual Russians that weren't brave enough to be true to their feelings OR truly believe that what they are feeling is wrong.
This law makes that even worse (as you know from your vehement "I don't agree with this law") and the idea that this "Protects" the children makes the children believe that this is wrong and when they look back on it, they will hide any tendencies they have towards the same sex. This is how this is.
Now, as has already been pointed out, change happens because people speak out about it. So people will speak out about it! And some will boycott the Olympics because of it. I've wanted to go to Russia since I was small (because I think it's gorgeous and there is soooo much history), but much like I will not be stepping foot in Egypt or Greece or any of the countries I really want to see but are dangerous for me at this moment, I would not go to Russia! Even with Democracy in place, laws change because people are vocal about how wrong they are and people's minds change. It's why Gun Laws (as you keep mentioning) are such a BIG deal in the US. There's enough conflict WITHIN our borders that we don't need outside pressures to fix them.
Until there are laws to protect the competitors and their families and supporters, I think that it should be moved because any competitors that do not feel safe should not be forced to compete there to complete their life's dream, to win a medal on the world's largest stage. Because I don't know if you know this, but most Olympic competitors have been training since they were children. THIS is the culmination of their life's work and their lives shouldn't be in danger to compete, even if they will anyways because it's worth it to them.