He doesn't "favor the death penalty" he calls for the execution of people based on their sexual preference in accordance with Biblical law. This man's endorsement was touted by Paul's Iowa campaign. So yes, I find that offensive and reprehensible; Paul should immediately repudiate the endorsement.
EDIT: In re to nirvana's misreading of my comments below:
> To claim that Ron Paul endorses murdering homosexuals because some random religious guy who does, endorsed his campaign is a lie.
I never said any such thing. I said that Paul, i.e. the Paul campaign is seemingly directly linked to anti-gay sentiment as evidenced by the endorsement of Rev. Kayser they touted on their website. That's repugnant.
Also, I don't appreciate being called a liar: These aren't my opinions. They are confirmable facts. The campaign was endorsed by a person who wants to murder gays. This endorsement was featured on Paul's website. It's deplorable. I'm only sorry you don't feel the same way.