From what we’ve heard, about the only thing Roddenberry liked about the idea for Captain’s Holiday was that in addition to the heterosexual couples in the background , he could have gay couples. The writer thought it would get the episode dropped, and in Chaos on the Bridge, Berman was very direct about having to stop that in its tracks.
If it was Roddenberry and not his power tripping lawyer or Paramount who killed Blood and Fire, I expect he was being petty about how Gerrold went from adoring him to arguments and mutual disrespect during the calamity that was TNG season 1.