Greyhound to go gay?

I've heard some rumours recently that the Greyhound Hotel , arguably St. Kilda's last surviving real rock venue, is to be transformed into a full time gay bay in the next couple of months.
This annoys and saddens me on a couple of levels. Historically, St. Kilda was always something of a gay hub- who remembers those drag queen photos that used to line the staircase at the Prince Of Wales?- and still hosts the Gay Pride march each year. However, the centre of gay culture in Melbourne seems to have cemented itself fairly firmly a couple of kilometers away, in Prahran. Up there, The Market Hotel, where I once saw bands like Little Murders, International Exiles & the Nicest People , has been a gay bar for years now.
The drag show in the back room of the Greyhound has peacefully co-existed with the rock & roll in the front bar for years. I just can't see how the place will survive as a full time gay venue though- those long term customers who prop up the bar each day will go elsewhere, for a start, and the location is, as I say, outside the gay district. Where will the bands be able to play now?
And why do we need segregated bars these days anyway?
It seems to be a bad decision on a few different levels, and I hope the rumours turn out to be false. The 24 hour kebab shop/garage across the road is being demolished soon (where will the Carlisle St. working girls get their 3.00am dim sims & cans of Coke?) and if the gay thing doesn't fly, I can see the 'Hound being converted into apartments in the next year or two.