Zurich is regularly recognised as one of the world's best cities for quality of living, something which is not so surprising considering its very scenic setting, at the confluence of the Limmat river and the Zurichsee. The city may be associated with world-class finance and banking, but it is also a very edgy and cosmopolitan destination, with many old factories and warehouses now converted in cultural centres and funky living spaces. The old town has been very well preserved and therefore is very picturesque, with its winding lanes and church steeples. There isn't a gay village per se, but most of the LGBT bars & venues are located in the gorgeous old town.
Switzerland is a very accepting and tolerant country, especially in urban areas and although same-sex marriage is not legal yet, registered partnerships are since 2007. Larger cities like Zurich are home to a vibrant LGBT community and feature quite a varied and sizeable gay scene.