My memory is imperfect and fading.. but...
Kerry's first wife suffered from depression if I recall.
In the context of a question related to health care, would it have been "correct" for Bush to say..
"Senator, since your ex-wife suffered from depression, you know what I speak of when I say..blah...blah about mental health...."
As long as Kerry had already candidly spoken about his ex-wife's mental health on the campaign trail, it would be fine. Cheney had already come out and admitted that his daughter was gay voluntarily, and had talked about it in speeches.
It's not the bedroom police at all; Cheney has brought it up himself, and nothing that Kerry said was incorrect, or even negative. If he had criticized her sexual orientation, that would be completely different.
I agree that Kerry probably specifically mentioned Cheney's daughter as a way of highlighting division within the ticket (and also in the hopes that the reminder of this fact, coupled with the Cheneys' complete acceptance of her sexuality, might dampen Religious Right enthusiasm for the ticket). But, as he said nothing that was not already well known and acknowledged by the Vice President himself, I don't see why it was wrong.