Whether you define (denotation) "Gentile" as a non-Jew or a non-Mormon, a common usage (connotation) is that of insider vs. outsider.
The Law that ancient Jews followed, as codified in Leviticus and Deuteronomy, served to set them apart from the society in which they lived.
Think about it for a moment: specific and intricate rituals regarding washing, food preparation, male infant rituals, and Sabbath rest would make you stand out from a pagan culture.
That was the point of the Law--to remind the Hebrews of the covenant they had with God. "I shall be your God and you shall be my People."
The LDS church identifies with the Hebrew Scriptures (Old Testament) much more heavily than other Christian denominations. Part of this reason has to do with the Mormon belief that Christianity as practiced before Joseph Smith's revelation was corrupt and not the religion God intended.
(Many Christians want little to do with the Old Testament, preferring to believe that if it happened before Jesus, it isn't important.)
It would follow that Mormons would want that kind of set-apart-ness that the ancient Israelites had. And we do see that in the church today.
In fact, the original question about Mormon Dorms addresses that desire to be "in the world but not of it."
Which brings us back to the term "Gentile." It is a term historically used to differentiate between us and them.
And while its use to define non-Mormons is more limited than its use to define non-Jews, it is still a valid (although perhaps less well known) use of the word. My guess is that it is used far more often in the Mormon culture than in the world as a whole.
And back to MY original question:
What would be different about LDS CP housing??