I think there are two different definitions of drag.
Old school was about making fun of gender- Widow Twankey, Peter Pan, etc.- and then this morphed into complex characters being portrayed by the opposite sex, i.e. Dame Edna and Lily Savage. They could say things that sounded funny because they were male, and their obvious physicality played into the narrative.
Then ballroom drag... which was a bunch of flamboyant, untalented and shallow gay men who were not willing to put the work in to actually connect with the crowd and develop rounded characters, etc., and the end result is men portraying highly sexualised and often offensive, stereotyped women. This is what drag is now... they don't mind using the word "dolls" to portray what they think a woman is- which is pretty much all you need to know about what these men think of women.
The first type was talented enough to make their act appropriate for their audience, even if they were misogynistic underneath. The second group works fine in a gay club, but cannot really be on mainstream media channels because most people see a man ape-ing a woman. It wouldn't be acceptable about race, and it won't last long nowthat the trans stufff is wrapping up.