I'd have to disagree with the above appraisals. Most popular gay websites don't use the word gay in their domain name. Ex: ManHunt.net, Adam4Adam.com, ManJam.com (all of which get more traffic on their own than gay.com). The main reason for this is because 50% or so of the audience gay social networks and websites attract are closet cases and married men. GayFriend dot com would turn off those who don't identify with being "gay" and dont want to be affiliated with a "gay website".
Most gay people generally speaking aren't looking for gay friends online, their looking for hook ups/action which is the reason why hook up sites, webcam sex chat sites, and porn related websites do incredibly well in the gay niche. GayFriend doesn't get many searches a month 720(usa exact)-2,900(global exact) but it might work as a social network type site. I'd appraise it at mid $xxx. I think if it was the plural (GayFriends) it would be worth much more.