Well, in the fourth season, Jeff moves to Lesbos, and, in the season finale, Steve has a dream that he's come back, except he looks like one of Steve's old teachers (with "stallion" breasts). He explains his appearance by saying that he had been going through a dry spell and had started to wonder if he'd ever see a woman naked again. "At that point, I may have lost my sense of proportion."
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Thus, he becomes a true Lesbian.