I disagree with you, he ruined the lives of Craig Mack and many others. His gayness has made others visually uncomfortable and he seems to be a money hungry shrewd business man. He even tried to take credit for a remix that Easy Moe B did.
He is respected due to his power to black ball people but he is not respected for any other reason and not everyone respects him. Drake doesn't respect him, Fifty doesn't and Future called him an old bytch.
I'm not the judge and jury of someone else's morals and sexuality.
Diddy is still respected and it has more to do with his ear for music than his power.