I'd prefer to let Tim be Robin and Damien can get a new code name. But if Tim stays Red Robin, that can be ok too. He just needs his own title, regular guest appearances in Bat books and a team spot on Young Justice or Titans. His new relationship needs exploring, although I'm still not giving up the hope for Conner as a love interest for him eventually.
It's hard to do much with him in a rotating anthology book.
I don't think him coming out was a publicity stunt. I think it was the vision of the author and lower editors and it took everyone by surprise how much attention it got. They didn't promote it before hand. Tim wasn't even on the cover of the issue.