Is this true or urban legend?
I have no opinion on the moral fortitude of Larry H. Miller, but some insight into his though process occurred several years ago when he made a very public decision not to show Brokeback Mountain at his theaters at the same time he was showing the torture porn movie Hostel (I believe it was).
Although I was part of the culture for decades (and still am although vicariously), I struggle to understand how religious folks are so prudish about nudity and sex on the screen but don't seem to get their priggish panties in a bunch about violence, gore, torture, sadism and murder (particularly in the case of the Left Behind genre when it's God inflicting it on the unrighteous).