I studies Japanese Pop Culture, and I used Japanese yaoi (MM) genre for my thesis. in yaoi, almost all of the writers and readers are women. it can be seen that Japanese women uses this genre as a mirror for their own relationship, because there are not traditionally bound as the real relationship in real life. the characters are seen as the ideal image of a man, and this ideal man-figure make the story accepted and loved by many of the readers (women). even if they (the characters) are impossible to exist in the real world. (or, BECAUSE they are impossible to exist?) Also, these fictional romances also could be seen as 'the last type of forbidden love' -kind of story. Japanese love a forbidden love-story.
Sorry for bumping up an old topic guys. But I have read an excellent book called The Charioteer by a woman named Mary Renault. It's a classic and about romance between two men during the war. I believe auswombat mentioned her in a previous post and I just wanted to vouch for the author. Her book was very touching. I am a female and write MM fiction myself but nothing close to erotica. Instead, I use authors like Edmund White, Scott Heim, and Dennis Cooper as inspirations for writing gay fiction that may leave an impact on readers and have a deeper meaning.
Also, a recent bestseller involving queer literature is A Little Life by Hanya Yanagihara. Excellent but long read.