This is a long thread. I'm skipping lots.
First comment: Texas gonna Texas. Apparently if it's not worth doing to an insane extreme, it's just not worth doing. Like so many other bits of policy coming out of Texas in recent years... this seems to have lost contact with reality.
Now that we've got that disclaimer re: idiotic extreme policy out of the way... I'm personally not a fan of drag. And I'm very much not a fan of drag being presented to children.
First, let's be clear that there is a spectrum involved between drag performances, pantomime performers, and male actors performing female roles (or spring boarding from there ala Mrs. Doubtfire). There is not a strict line between these categories, but I will attempt to provide some broad descriptive categories for how I personally view the distinctions.
Let's go backwards. Male actors performing female roles generally involve exactly that, and little more. The portrayal of females is generally pretty realistic, very occasionally exaggerated for comedic effect, but not excessively so.
Pantomime is a stage portrayal. It generally involved exaggerated makeup - more than the average female actually wears, but the focus is on glamor. Most pantomime is fairly respectful toward females, portraying them as powerful, elegant, and beautiful, often intelligent and witty. Pantomime is almost never sexual in nature.
Drag is usually adult entertainment, portraying sexual themes. The clothing and makeup is intentionally caricatured, and often portrays females as sex objects. They usually involved extremely large breasts and exaggerated hips and buttocks. The content is frequently lewd and raunchy in nature... and it very often portrays females in a denigrating manner.
Like I said, there's no bright line between them, but the categorical descriptions are reasonable.
I very much dislike drag. I very much view it as males in "womanface" portraying a negative stereotype in a grossly caricatured manner. That said... if adults want to go be entertained by males wearing overtly sexualized clothing and portraying females in such a way, fine. They're adults.
I am pretty strongly opposed to drag performances for children - even if you strip out the overtly lewd content of a drag performance, you're still presenting young children with a caricature of womanhood that I personally think is offensive and insulting to females. I would be opposed to having a blackface perform read to children for the same reason - even if you stripped away all of the overtly racist narrative, you're still presenting children with a caricatured stereotype of black people as if that's acceptable and normal.