Wow, this is truly one of the worst threads out there.
Cornell is the obvious answer. Ride the waitlists--of course, getting into a higher ranked school would be game changing.
My basic feel from your cycle is that you aren't a lock at T6 schools, and so reapplying is not a safe strat; there is a high chance you'll burn a year and end up in a similar or worse position. That said, I don't know your numbers, and it may be that you are a strong T6 applicant, and simply got burned. I will say that reapplying for MVP over Cornell with money seems off to me, especially if you want big law in Cali--none of these schools strike me as being the way to land a good Cali job, and you are talking about a few years of your life. Retake/reapply for top Cali schools might be a viable strat (although, look at this thread for a scare: viewtopic.php?f=23&t=157037
). If you are less tied to Cali, and might enjoy practicing in NYC, Cornell is absolutely and unequivocally the right answer.
As for being gay in Ithaca, you have absolutely nothing to worry about. It is an extremely liberal town, and anyone knowledgeable about Cornell will happily reassure you about this (while at Cornell, I had a gay housemate, and not only was I comfortable with it, but it didn't raise any eyebrows either that a straight guy was living with a gay guy). If you like big cities, you may find Ithaca less than desirable, but there are worse places to spend three years, I assure you. The only people I know who really dislike Ithaca are people from Texas (which is not to say all Texans hate Ithaca, but that I've only noticed significant Ithaca hate in Texans); a great deal of NYC and other big city folks seem to enjoy spending a few years in nature (although most are vocal about not wanting to spend the rest of their lives there). There are plenty of Cornell Law folks lurking about--track one of them down and ask them questions if you still have concerns.
ETA: OP posted while I was posting. His clarifications make me somewhat regret the harsh tone of my post.