http://www.pinknews.co.uk/2013/08/08...russia-so-far/
The law being vague allows people to say "Well, that's not so bad" while allowing Russia to use/abuse the law to its full extent. What really matters is how the law is actually applied, and if the above article is accurate, then I fear the worst.
Would an athlete winning a medal and kissing their same sex partner be considered "activism" by the IOC? And if someone was stripped of their medal for running with a rainbow flag, I'd chip in to replace the medal. But I agree that boycotting would only play into Putins hand by increasing the Russian medal count.