Sydney
I am fortunate to have been to most major cities in the world. Last week I went to Sydney for my 5th time. It was the first time in about 4 years. I was struck at how downhill the nightlife has gone on Oxford street. Other than the weekends, nothing was worth it. Even Friday night was stretching it a bit. I understand that during the special events, it is probably special, but a normal week was pretty dismal.
Don't get me wrong, Sydney is beautiful (and expensive). It is one of the prettiest cities in the world. But I certainly would not spend my money for a gay holiday there. I noticed that there were two mentions of Sydney in the NY Nightlife thread, and they had posted essentially the same idea. Such a shame.