I believe it is helpful to broaden the term "sexuality" to include aspects of attraction and desire that are not contingent upon one engaging in sexual acts when we discuss the definitions of queerness. I also believe queer is a much broader term than non-normative sexualities, as it is descriptive of non-normative gender identities and expressions. It is through this definition of queer that I define Heavenly Creatures as a queer film.
I believe the sexualities and gender expressions of both lead characters in Heavenly Creatures to be incredibly complex, and even if read as heterosexual, to expand far beyond the parameters of what one could define as being heteronormative. Could we conceive of their relationship as being one of same-sex romantic interest but asexual? Or as I stated earlier, could we think of sexuality as something that extends beyond physical acts? Both I believe to be important considerations given the invisibility and perceived impossibility of asexuality, and also the historic definitions of lesbian sex as non-existent because it wasn't penetrative (at least not to the same degree that heteronormative and procreative penetrative sex is).
Pauline's and Juliet's relationship is obsessive, but mutually so, and it is notable that their families, and following the murder of Pauline's mother, the state is responsible in acting as a barrier between the two.
While John Waters' film, Female Trouble, has a much larger queer following, I believe this is a poor litmus test to measure the queerness of a film. Female Trouble is more explicit in its queerness and was made by a queer filmmaker larger for a queer audience. I am not sure we can (and/or should) effectively state which film is 'queerer' given that based on the intended audience. Simultaneously, I want to exercise caution in stating that because as a queer identified person I do have hesitations over who gets to claim the term "queer", in what contexts, and for what purposes. I believe Jackson's direction of Heavenly Creatures, and the portrayal of incredibly complex characters, was very well executed.