A straight reading of any text implies making some effort to hear the story the author was looking to tell, rather than imposing something that a re-interpreter wants to say on the text. Which is what goes on with attempts to "queer" it.
How could you possibly know what 'story' Shakespeare was looking to tell? (And I doubt he was trying to 'tell a story,' seeing as how he was writing plays.) It's perfectly possible that what you call a 'queer' reading is closer to his meaning that some other interpretations, including togas and cloaks. How would we know? And why should we care?
I get that, for students studying to pass exams, it is important to see versions that stick fairly close to the texts we have. But that is because they're studying for exams, not because it's necessarily particularly good Shakespeare (or good theatre) to do it that way.
No one has said that there is no one who can appreciate a different treatment of a play, but that in order to do so, you need to understand what is being done, which depends on some level of understanding of the original context. You've basically just said there is no original context, or at least we have no access to it, so that rather implies there really isn't any way to make any sense of things like gender swaps. In a way the implication is there is no meaningful narrative that we can communicate.
No, I haven't said there is no original context. However, that original context includes an enormous amount of interest in ideas about sex, sexuality and gender. If Shakespeare had written and lived in some imaginary time when people had no interest in sexed bodies and barely noticed the differences between men and women, of course it would be weird and daft to impose a reading of the play that imported these things. But he didn't.
You have to work out how you want to translate things. If Shakespeare's company put on plays in contemporary sixteenth-century dress, is it more faithful to the spirit of the plays for our actors to wear hose and farthingales, or to wear our own version of modern dress? There's no right answer, but the question matters. Same with a 'queer' (really don't like that term) reading. In As You Like It, Shakespeare is playing about with contemporary ideas about gender and sexuality, and it's a little risque; some people would likely have found it a bit offensive. But we're no longer (mostly) shocked by the same things. Can we substitute some gendered transgressiveness that still does shock people a bit, to get the same effect?
That'd be the argument for a 'queered' version. Now, I think this particular version sounds a bit crap - though I probably shouldn't judge sight unseen - but I don't think you can simply dismiss it because you think it's not 'straight' Shakespeare.