Thanks for telling me about this Scott!
The fact the Native American Elder performed a blessing doesn't surprise me at all. Before Christianity was introduced to Native Americans, most North American tribes welcomed homosexuality, especially the various Plains tribes such as the Sioux. To be homosexual was considered a blessing, both for the gay individual, and also for the tribe. It insured stability within the tribe, since a gay person was viewed as a bridge between male and female. Gay people were considered gifts from God to many Native Americans. Gay people were elevated and honored, and in some cases even worshipped, or nearly worshipped. After the White man arrived and introduced Christianity to the Native Americans, many converted to Christian faiths, mostly Roman Catholicism, and soon after many Native Americans began to reject homosexuality.
Today there is a movement among many Native Americans to return to the old ways, and with that comes the elevation of gay people, just as their ancestors did hundreds of years ago. It sounds like this Elder is probably observing the old traditional ways, and therefore he felt perfectly comfortable, probably even obligated to bless something related to the story of Brokeback Mountain.