From this meeting, Michael has surmised the following, which he says in an interview: "The company has made it my responsibility today to put an end to one hundred thousand years of being weirded out by gays." If that were what Jan had said, Dunder Mifflin would deserve to be sued. Um, even more.
Michael's called Oscar into his office for a rap session. Oscar asks Michael whether he's the first gay person Michael has ever known. Michael decides that this must be a trick question, since you can't always tell, so how would he know? "Is that the right answer?" says Michael, faltering. Damn those gays and their clever wordplay!
Apparently it isn't the right answer, since Oscar's just dropped his head in defeat when Pam opens Michael's door and tattles that Dwight is looking at gay pornography on his computer. I already said, don't Google it! Ah, no one listens. Dwight brays that Michael knows what he's doing. Michael, Kevin, Creed, and Meredith have gathered around Dwight's monitor and are looking on in fascination. Michael, as usual, over-corrects, saying that he doesn't have a problem with what's on Dwight's screen, and actually finds it "quite beautiful." Oscar comes out (no pun intended) and asks what everyone's doing. "Watching some of your friends," says Angela, meanly. Oscar says that this is stupid and brushes past her; she stumbles and yelps, and Dwight is instantly up out of his seat and kicking at Oscar in Angela's defense, which is when Michael decides that the moment has come for his excellent leadership and orders everyone into the conference room, regardless of whether they're gay or straight or a lesbian or overweight. I wish he would go on listing one attribute for each person in the office: "Or a binge-drinker or creepy or depressive or a total wussy-ass coward or a beet farmer..." But that doesn't happen.
After commercials, Michael's leading a meeting with his typical sense of occasion. He starts by giving his troops some background on the word "gay": it used to mean "happy," and then when Michael was a teenager, it meant "lame." Heh. But now it means a man who makes love to other men. Sitting up against the window, Pam turns to Ryan to try to share this ridiculous moment with him, but he's like, "What?" and she's left to look at the camera instead, having no one to mock Michael with. Which seems impossible, but there it is. Anyway, Michael invites Oscar to take this moment to officially come out, however he wants. Oscar decides not to fight it, and he stands and says that he is gay, although he didn't intend to share that part of his life with his co-workers today. If he had, perhaps he would have worn something a bit more faaaaaaaabulous!