The organizers have done a great job developing a public central area where the athletes congregate. At night, and even to an extent during the day, thousands of people crowd the streets (blocked off from traffic) of the "Bermuda Triangle," where you'll find many of the gay bars. There are tents selling drinks and food, stages with live performers and DJs, and the festive atmosphere isn't lost on the athletes hoisting one another up half-naked (or naked) on their shoulders.
The funnest team I've run across is the Paris basketball team. Transferring trains from triathlon to cycling I ran across them and they couldn't have been more gregarious, then I ended up hanging out with them most of the night at the Bermuda Triangle. It's probably the best part of the Gay Games: Everyone is in a good mood and their guard is down, which makes everyone super friendly.
I've never eaten so much sausage in my life (and no, that's not a euphemism). Everywhere is Bratwurst, bratwurst, bratwurst. Currywurst is also very popular, generally served sliced with a curry sauce; I've enjoyed that. But I saw a pizza yesterday with "thunfisch": Yep, chicken of the sea on a pizza. Yikes.