If someone writes a gay character who is a stereotype, the answer to any hurt feelings is to fix the character's portrayal, not to make them straight instead. If nothing else, the latter would be rugsweeping; instead of acknowledging the hurt feelings, they would pretend it never happened, and that isn't how you repair hurt feelings.
If someone writes something thoughtlessly as a joke that is offensive, I would prefer they issue an apology and remove the joke rather than double down and attempt to justify their mistake. Trying to salvage something sincere out of a rape joke really leaves a bad taste in my mouth. The fact that so many people need to headcanon that he's using sex as a coping mechanism to 'fix' the narrative to be something less offensive is awful. Similarly, I find 'it happened 200 years ago' to be a lazy excuse for writing something offensive. It's so easy to say that elves live a long time and wash their hands of any narrative issues because it's a fantasy world. That smacks of wanting to have your cake (throw in a little sexual slavery for background spice) and eat it too (not have to deal with any repercussions for doing so.) A rape joke spinning it's wheels to try and become something legitimate is not good representation. It feels more like an attempt to save face.
I understand your desire for representation. If it helps any and you're looking for male representation of victims who are not sex repulsed, here's a list. Please note that these portrayals are of varying quality and listen in no particular order. [Spoilers for the respective stories.]
Niel McCormick from Mysterious Skin becomes a sex worker after his abuse. Sterling Archer from the TV show Archer was assaulted while unconscious by a friend but he still has sex all the time. Bruce Wayne and Dick Grayson from the various Batman comics are drugged or otherwise taken advantage of on several occasions by female characters but aside from Damian Wayne being born they continue on as normal. Hassan from The Kite Runner goes on to have a normal life and a son. Many of the enslaved men in the Spartacus TV show (Varro, Spartacus, Gannicus, Crixus, and Nasir to name a few) are forced to have sex by their masters and Caesar is assaulted outright and it never affects any of their ability to have sex. Mat Cauthon from The Wheel of Time series is a direct 1-to-1 for this situation; imprisoned by nobility, repeatedly raped, but then goes on being his flirtatious and sexually active self afterward. Jeremy Butler from A Cruel God Reigns turns to prostitution and heroin following his trauma, but it's a lot more overtly sad than the other examples. I haven't seen too much of it, but Derek Morgan from Criminal Minds is a victim of CSA.
Again, that's all male victims and published work of various media. I could expand to female victims and fanfiction if necessary.
I feel like using Archer as an example of a non-offensive portrayal of male sexual assault survivors misses the mark, considering it is absolutely played as a joke several times throughout that show, even with other characters. Archer's an adult comedy, after all, it is full of tasteless jokes ranging from making fun of sexual assault to making fun of people of color and LGBT people (the 'trans panic' joke episode, as an example.) The Wheel of Time series of books eroticizes sexual assault experienced by female characters, while using sexual assault against men as a moment of horror due to how it is treated as "emasculating" for a man to be forced into sex. As a male survivor of sexual assault, I would not point to either of these series as good "representation" of sexual assault against men, or anyone, at all, in any way. While I like Mysterious Skin, I also would not think to ever compare the character in it to a character like Halsin- Mysterious Skin has its own mountains of criticisms leveled at it by gay survivors and sex workers over the decades.
And survivors all have different opinions so if someone disagrees with me that's fine. It means we have come to very different places of viewing things after our experiences.
But speaking as a male sexual assault survivor, I'd personally much rather Larian not erase the backstory they ended up giving Halsin with the one-off dialogue we are discussing, and actually buckle down and take it seriously, because I'd rather have this example of a male sexual assault survivor we rarely get to otherwise see in media. Halsin is strong, powerful, good-hearted, well-respected, physically intimidating, and it still happened to him. It's meaningful to have those kinds of narratives in mainstream media. Larian is attempting to rewrite it to give it due weight and I greatly appreciate their efforts, and look forward to seeing the changes made.
