I did a fascinating paper on the subject for a college Abnormal Psych class. Drag queens are not, for the most part, homosexual. Look at the Monty Python sketches or someone like Dame Edna Everage.
That is not to say that all drag acts are harmless satires. The Judy Garland/Cher/Marilyn Monroe imitators are spooky. They identify very strongly with their idols, and seek to become them, even across gender lines. Which to me is a little bit pathological. But even then, the phenomenon isn't sexual. It's twisted, to be sure, but not intended to be erotic (unless the subject character is known for her eroticism).
All that said, I fail to see what this kind of act is doing at a US military installation. It's one thing in the red light district, but another altogether where it's sponsored by our tax dollars and staged on a government post.
I didn't accept that premise either. The disturbing part is that the Air Force is going out of its way to promote that premise.