I think it's pretty clear that the leading theories here at this point are "Te'o's a moron" and "Te'o's ***", and I do think it's kind of funny that Te'o apparently believes that it's better to be perceived as a complete and utter moron than to be perceived as homosexual. This is probably accurate given the culture of football, but it's kind of funny (in a sad kind of way).
I don't think it has much to do with where he gets drafted.
If he falls in the draft it probably has more to do with the fact that he struggles to get off blocks, isn't very good in coverage, and doesn't have great range than any of this. But I can't completely put aside that NFL teams might be concerned with how being embarrassed like this would affect him on the field and in the locker room.