I love all of Presto! There's nothing "gay" about Hand over Fist ( not that there's anything wrong with that). The bridge section is awesome "take a look outside yourself in some exotic land, great a passing stranger, feel the strength in his hand feel the world expand". That's actually a pretty clever song, and Alex's guitar work is great.
Hand over Fist always struck me as a song that one of those manufactured Disney teen vocal groups with a dance that revolved around "hand over fist, paper around the stone...." Like I said before, embarrassingly bad.
For all the praise of Neil as a lyricist, not all of them are winners, and I see a lot of his more highly regarded lyrics and think "WTF?". Not this one; I think this is one of his best lyrics, and works on several levels.
The "competitive nature" of rock-paper-scissors, and how the metaphor of a clenched fist is powerful in that context, but even that can be beat by "paper" (also a metaphor, for intellectualism and idealism). The fragility and transience of relationships ("We grow further apart"). How those relationships can be improved (and conflict avoided) by the opening of the fist into a hand, and laying hand over hand, another way of saying "holding hands", can overcome (not to mention the added metaphor of "open", as in open mind, open heart, and the aforementioned open hands).