One thing that just came to me just now was that, despite Luz being the main character, we never actually any exploration of her bisexuality besides blushing to both guys and girls, dating Amity and coming out to her mom during the Thanks to Them montage.
Like, we don't know how Luz realized she was bi or when she did -was it before or after coming to the Boiling Isles? If it was before, how did she feel on being closeted? Why did she feel the need to be in the closet? Was she also bullied for being bi and gender non-conforming? If it was after coming to the Isles, was Amity the first girl she knowingly crushed on? How did that realization felt? How does she feel on being in a place where queerness is normalized, to the point a brown nonbinary transmasculine person such as Raine managed to ascend to Coven Head status? How does it affect her relationship with puritan Belos?
It's kinda egregious when compared to Amity, who despite coming from a queernorm society, deals with stuff related to coming out as a lesbian, such as being afraid of being cruelly rejected by her crush, not knowing how to deal with this burgeoning feelings, chosing between what her parents want and what she wants, and standing up to her mother when she disaproves her girlfriend. And she's not even part of the main trio!
On top of that, considering the parallels between Azura and Hecate with Luz and Amity, and that Luz creates fanart AND fanfic about the books, you could even have her realizing her sexuality via fandom! It's a really common fandom experience of experimenting and realizing your queerness via fanworks! I myself did that!
I get that there are queer writers and audiences who just want queerness to be casual, as mundane as a character's haircolor for example. This usually comes from queer people being tired of homophobia plotlines or just being The Queer Character while the cishets get all cool genre storylines. Or they just don't see their own queerness as an interesting part of themselves. And I understand that. I've been out as bi since I was 22 and I don't feel like it changed my life drastically. It's just been fine.
However, I still think it's disengenuous to treat queerness as something a mundane as eye color because despite the advances on queer rights throught history, we still live in a white supremacist cisheteronormative capitalist patriarchal society, which means gender non conformity and any expression of sexuality that deviates from heterosexual monogamy with the endgoal of marriage and reproduction is still frowned upon. This means that being gay or trans or ace or whatever impacts how someone interacts with the world, and it would be disingenious to treat it otherwise, especially with the current wave of conservatism we're having.
Overall, I think there's a middle ground between tokenized queerness and queernorm.
PS: Yes, I know that Disney meddled with The Owl House to hell and back and they couldn't even showcase Eda going on a date because the executives didn't want to portray a "Dirty old woman". However, if censorship was the case, you'd think Terrace would speak about it, like she did about the aforementioned example or the Disney's involvement with the Don't Say Gay law some years ago, or most recently, the shelving of the Moon Girl episode centering a reccuring character struggles with being a trans girl playing volleyball.
I DO NOT know Dana Terrace, so the most I'll say is that it seems as if it didn't occur to her to expand on Luz's relationship to her own queerness, despite being queer herself. Anyway, it was one hell of a missed opportunity.