The Penile System is the system of "corrective" camps established by the neoconservative post-apocalyptic government that disapproves of anything outside the heteronormative; all the people who object to traditional values or refuse to follow the born-again rules get sent there. There's a special branch for those who exhibit signs of believing that love knows no color, shape, or gender.

Seriously. Spell check and budget cuts are responsible for some bad bad things.

ETA: Alternatively, I'm imagining prison guards like the main characters of Will and Grace, with thought-they-were-straight-before inmates who are bewildered by the incestous world into which they've been thrust. *dies a little bit*