Some effects of the closet on GLBTs include:
Clandestine sexual practices
Anonymous sexual practices
Self-loathing (internalized homophobia)
Magnet for disease (STD and otherwise)
Truncated sense of wholeness (disempowerment)
Superficial relationships with straights and gays
Sheer pain of not being oneself
Intense loneliness of not being wholly possessed by or possessing a life companion
Senator Craig and Ted Haggard are the victims, not of hypocrisy, but of the closet—a closet of our making. This is a true case of blaming the victim when the finger should be pointing at us.
A corollary is at work here. Just as the closet makes this behavior inevitable, the elimination of the closet makes it go away. So, if you find the behavior of certain people reprehensible, instead of punishing them in the closet, allow them to live their lives in the full light of day. They and you will be all the better for it.