A few points on language:
1. I believe nobody is saying that Paul did not condemn the malakoi nor the arsenokaites; the question is if the words used to translate them into English properly convey the meaning Paul intended and have connotations in modern culture that Paul did not intend. To give a comparison from the Old Testament that has nothing to do with homosexuality but should clarify the point, I think most of us are familiar with the KJV translation of the verse, "Thou shalt not suffer a witch to live." However, what the Law meant by this was not a dabbler in hocus-pocus spells and most emphatically not a Wiccan; culturally, the word translated "witch" refers to a maker of potions -- and not merely (actually ineffective) love potions; a "witch" in ancient Israel would derive much of her livelihood by the sale of poisons, suitable for subtly killing an enemy. Now, everyone knows that in popular lore, a witch makes potions; "eye of newt and toe of frog" is from Macbeth. So the translation is not strictly in error -- but the connotation is so very wrong that it's considered a mistranslation.
Now, to our words from I Corinthians:
Malakos (singular; -oi is the plural) means "soft." It's the proper term for the feel of a sheep's fleece or a feather-stuffed pillow or cushion. But when used in a moral or ethical sense, as it often was by Greek secular writers, it means "lacking in constancy or fortitude, bending to whim." As such, it might describe the effete. Alcibiades might be described as malakos, for he was fond of luxury and changeable, in addition to being gay in the modern sense. But Epimondas of Thebes, leader of the Sacred Band of warriors, despite having a male lover would never be termed malakos -- the term had a specific meaning not accurately matched by any English word.
Arsenokaites (the word appears in several variations in the manuscripts) is the really interesting one. To the best of my knowledge, it never appears before Paul, who seems to have coined it, and (again TTBOMK) all subsequent uses are quotations or allusions to Paul's use of it. From the elements, we get the general literalistic sense "maleness-bedder" or "one who lies in some way related to maleness," but anyone who's ever shot an arrow at a bullseye knows the need to be cautious about literal meanings. Indeed, Paul's usage, when there were perfectly good Greek words to describe men who enjoyed sex with other men (as most people are aware, a commonplace of ancient Greek culture), suggests that we should shop around for the significance of why Paul felt called to coin a new term. And interestingly, the choice of terms echoes the Greek rendering of Leviticus 18:22, which uses the same odd construction. And it is included in a list of Canaanite sexual and fertility-idolatry practices that the Israelites were enjoined from engaging in.
Now, it's very interesting, in this regard, that Corinth was "sin city" to the ancient world. Fertility cults abounded, and there was a thriving prostitution industry, largely founded on slaves, including enslaved boy prostitutes. It takes very little imagination to picture how Paul must have reacted to this.
Consider the following parallel: "All sex is evil. We know this, because the Bible condemns fornication and lust, and fornication is nothing but sexual intercourse while lust is sexual desire." It's illogical to conclude this, because the terms are not synonymous ... but many a boy or girl at puberty has had pangs of guilt because he or she has felt the normal healthy sexual desire God created us with, and mistook it for the sins which Scripture condemns.
There is no doubt in my mind that the malakoi and the arsenokaites were sinners whom Paul excluded from the kingdom. There is a great deal of doubt in my mind whether he meant people in loving homosexual relationships when he wrote that.
And in any case, for the rest of us to be condemning gay people is far from what Jesus Christ Himself commands. It is, perhaps, akin to the person for whom alcohol has no temptation casting His wrath upon the alcoholic. (Not the world's best parallel, but it does have its virtues, notably that whether we will become alcoholics if we dare to imbibe is evidently genetic or congenital, not a matter of choice.)