Complex sentence: The legend itself is the creation of an obviously paranoid person spreading tracts about "homokaasu", but being widely perceived as both hilarious and bizarrely original (Catholic Church spreading homosexuality by chemical means?), it has persisted in Finnish Internet folklore.
Split into simpler sentences: The legend itself was created by an obviously paranoid person spreading tracts about "homokaasu". Nevertheless, it is widely perceived as both hilarious and bizarrely original, and it has persisted in Finnish Internet folklore.