There are great characters that just happen to be LGBT but also great LGBT characters. I don’t think eather is inherently better than the other. All good fleshed out characters have key motives, relationships and issues but also features that don’t matter that much. What are central, sort of important or filler elements dependents on what the story is and how it’s being told.
Great example of a character who’s sexuality is extremely important, is James Sunderland, the main character from Silent Hill 2. James is definitely a straight male character rather than a character who happens to be straight and male. His story is largely about his sexual frustration after his wife Mary got sick and passed away. This is largely told by symbolism of monsters, NPCs, objects and places that James meets in Silent Hill. These are things like Maria, a slutty doppelgänger of James’ late wife Mary. Most monsters that roam Silent Hill have traditionally feminine sexy attributes combined with body horror. The big exception being Pyrami head. He is masculine, unstoppable and has big weapon that he uses to impale his victims. All these come together to tell a great atmospheric horror story that wouldn’t work if James wasn’t straight and male.
An other example I want to talk about is a fanfic, Just dinner by Wikketkrikket*. It’s a AU fic that mixes Captain America and Ironman orgin stories with elements from Spiderman mythos. A great fanfic that concentrates mostly on character drama, grief and mental trauma but still manages to feel like a super hero story. Good foreshadowing, nice phasing and clever combining of elements from different sources. But most importantly for this discussion, a bisexual character who’s sexual desires are very impactful.
Iron Man is a violent vigilante and also, quite clearly, Tony Stark, even if the authorities can't prove it. Steve Roger is taking care of dying godson Peter Parker. Peter is soon turning four, huge fan of Ironman and wants nothing more than to meet him. Clearly impossible and Steve hates Ironman but as this might be Peter’s last birthday Steve is going to try anyway. Tony turns up willing do an appearance, if Steve goes dinner with him.
This Tony Stark wants to fuck Steve Rogers really badly. It’s not hidden the slightest, it’s a key motivator for whats happens between characters and why Tony chooses the actions he does. How he thinks about Steve and getting into his pants is used show Tony’s mental health issues changing. He starts by thinking Steve is just super sexy and trying sleazily charm his way to Cap’s pants, but as things evolve, he gets turned down couple times, Tony gets more obsessive and ruthless but also stars to slowly question his actions and thoughts. What started to him as nice change of phase from sleeping with airheads, turns into the first genuine human connections for years. But as those are something Tony has been very purposefully avoiding since getting kidnapped, it causes mental issues to surface that he rather not think about.
*
https://archiveofourown.org/works/11519013/chapters/25853142