I think it could be huge fun to do, with Holmes and Watson investigating a rather delicate situation while at risk of outing themselves if they're not very careful.
The thing that's stopping me running off and plotting madly is that I think I'd want to involve the seedier sides of London gay life of the time, but it's rather past the period of the molly houses. Cleveland Street seems to have catered to the rich and powerful, but there must have been the downmarket equivalents for middle- and lower-class men.
Can any of you point me at anything useful? I'll be asking the library to get me the Aronson book in case that has any more general background.
 But wouldn't "Molly House" be a wonderful pen-name?