The Conspiracy Theory
Claim: Dom and Elijah are desperate to come out but are being forced
to stay in the closet by a powerful contingent of PR handlers from
New Line and Warner Brothers who restrict everything they say in
interviews and in any kind of public setting; control where Dom
and Elijah live and with whom, where and when they travel, and whether
or not they are allowed to appear in public and with whom; and pay
off or threaten every tabloid, entertainment news source and gossip
columnist in the country to keep them from printing or airing the
truth about Dom and Elijah's relationship.
Actuality: The scope of claims alone should tip you off - what's being presented simply does not conform to reality. It would take a huge number of people and a vast amount of money to exhibit the control over every aspect of these two men's lives (not to mention the hundreds of cast and crew members who worked with them in New Zealand, and every media source) that is regularly presented as fact.
Like most of the claims that have no proof outside of anonymous "insiders" at DL-PP/DLR, there's no way to directly disprove any of this. It's more a matter of common sense. Elijah is not an A-list actor, and Dom is virtually unknown by Hollywood standards. Neither Elijah nor Dom is a romantic lead actor, and they quite likely never will be. The prevailing True Believer theory is that Elijah is important enough to warrant such extraordinary measures because teenage girls won't see the movies if they think Frodo is gay. The point is arguable, but ultimately moot, in that teenage girls are not the LotR franchise's main audience. LotR is an action/adventure/period drama, not What a Girl Wants. While a boycott by the more homophobic sectors of the teenybopper community might affect profit margins, it's extremely doubtful that it would be enough to tank the entire franchise.
Think for a moment about just how much money and manpower it would take to pull off the vast and never-ending level of control that DL-PP/DPR claims the PR contingent wields. Is it really likely that a major movie studio could focus this heavily on a pair of actors who haven't even reached household name status? And if they were devoting so much time, energy and money to keeping them in the closet, and succeeding to such an unprecedented degree, why would they allow all the physical contact and quasi-flirting that takes place between Dom and Elijah (and, of course, all the other LotR actors) that the True Believers swear is proof that they're in love?
Consider also this quote of Ian McKellen's: "I think that anyone who believes [that audiences would not accept gay actors] is just battling homophobia within themselves" (from this article). This is an interesting statement to apply to the True Believers, who hold themselves up as gay activists.
Next: The Money at Stake