Correct decision and there is no right or wrong answer in relation to pensions / service / payments.
Some, the initial decision it will have destroyed them with a probability of alcoholism etc etc. Whatever the result is and what ever the payment is, can never make up for being dishonorably discharged because of your sexuality.
If the Govt ends up paying out £100 million and £50 million of that is debateable then so be it, people had VOLUNTEERED for their country and it was their country that let them down.