So which is it, funny and harmless or sinister and foreboding? I've read through the replies here and am flabbergasted at the amount of attention these items are receiving.
Man-dressing-as-woman is a staple of American comedy. Taking offense or reading ulterior motives into it is the same as thinking a whoopee cushion crassly makes light of serious gastrointestinal disorders.
A friend of mine's kid developed a crush on the Little Mermaid. Did that make him some sick, mythical-fish-beast lover?
I'm sure kids and our culture will survive Shrek 2. However, one certain way to confuse them is to point out all the sinister things you see in their harmless fun.