"Kids are not stupid, they can understand it."
This is simply not true. We hear about people 'grooming' kids all the time in the media. It's something that parents have to watch out for on Facebook, for example. It's very easy to get children to accept something as normal. (I'm not comparing this type of grooming with what happens in these camps - I'm just using it as an example.)
"but it teach them to be tolerant"
The younger generation is not only tolerant, but totally accepting of peoples' sexuality - these camps will have no affect on that.