Bingo. You are exactly right. And this is far from the first time that Larry Craig has been accused of hitting on men. Here is a link to a very detailed story from his home state. I recommend reading this.
http://www.idahostatesman.com/localnews/story/143801.html
In my view, there are several layers of immorality here. The first layer is that he hit on a man in a public bathroom, which is at the very least tacky. The second layer is that he is married and he hit on a man in a public bathroom, which makes this act of infidelity. The third layer is that he is a U.S. Senator who is married, and he hit on a man in a public bathroom, which makes this an act of infidelity by an elected leader. The fourth layer is that he is a "family values" Republican U.S. Senator who has voted against gay rights measures, and he is a married man who hit on an man in a public bathroom. That makes this an act of hypocrisy and betrayal of the public trust. The fifth layer is that he has long denied claims and rumors that he has hit on men in public places in the past, which makes this an act that took place in a context of repeated offenses and repeated lies about those offenses. That makes this part of a pattern of immoral acts.
I think it's the hypocrisy and the betrayal of the public trust that stinks the worst, though his wife is probably more upset over the infidelity. Or maybe she is used to it and has come to accept it. We don't know.