In reply to:

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If this song is about Bowie accepting his bisexuality, then why, during the Lets Dance era, did he so vehemently deny it?

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Laughing Gnoome's post went just whee over my head, so let me try to offer another explanation: it's a hidden message. Just like Ricochet is considered by many to be Bowie's apology to his old fans for going so commercial (here), Modern Love could be a hidden message to his old fans, that he actually still is bisexual, though he denies it. Did I say that in the first post allready? I have a feeling I'm repeating myself here.