Regardless of whether Danyl is ashamed, not ashamed or not in the slightest bit bothered (as I suspect) about his sexuality, Danni had no right to bring it up in a public forum like she did. The last time I looked the X Factor was at worst a talent competition, at best a singing competition, therefore the sexual orientation of one of its contestants should be irrelvalent.
Personally I think the fact Danni is feeling the need to stoop so low in her comments on the very first show quite telling. And she also needs to bear in mind the huge gay following her sister attracts, as lets be honest here, it's not really her talent as a artist that people admire.
Her apology appeared to be little more than lip service and due to the tragic death of Stephen Gately it appears her commently unwarrented comments have been ignored. Danni should not be allowed to make such comments and then hide behind the fact that 'Danyl was not offended by them'. Regardless of whether he was or not, a lot of people were and using a persons sexuality as some kind of cheap, point scoring exercise is not acceptable.