Janice: I think you are making a common error, which is that of identifying the singer with the character, whom is being portrayed. The whole point of,"Love Me I'm A Liberal", is that Phil Ochs is putting down the smug, trendy pseudo liberal, who is ostensibly defending his position. Quite honestly, I can't see how anyone can see that character as anything but a prat. Pete Seeger also gets a name check in that song. The character likes singing protest songs, as long as he is in no danger of having to suffer any loss for his "convictions".
I suppose the word "dykes" might cause offence among some lesbians. I say "some", because I have heard more than one lesbian use it to describe themselves. If you are offended, you are offended, but I could detect no gratuitous spite.