In all my experience interpreting dreams the rainbow always represents feelings of relief that something is wonderfully fixed, usually after experiencing a problem. Similar to a real rainbow showing up after the rain making you feel “Wow, hey look at that there’s a rainbow” or “I can’t believe I’m seeing a double rainbow”, in a dream the rainbow usually represents a problem that has balanced itself or went away because someone else fixed it for you. Or relief that a problem went away on it’s own when you didn’t expect it to. A happy ending or outcome when you didn’t expect it. Everything ends up working out nicely.
Statistically, gay culture is anything but a metaphorical rainbow. Highest rates of AIDS, high rates of suicide, and ever present issues with acceptance. It may be wonderful to feel accepted as out, but the cultural problems aren’t fixing themselves like a rainbow feels.
In my view a rainbow belongs to an kindergarten class, an art class, or children’s storybook…or in your dreams.