Maybe, but kids also don't exist in a vacuum.
I'm pretty sure if my school had done something like this, it... kids in my country are constantly inundated with sex and gender norms from a very young age. Or at least they were in the 80s and 90s; there are "boy" toys and "girl" toys and all that crap. All a drag show would have done is reinforce sex and gender stereotypes, making nonconformist children that much more miserable as they face a heightened onslaught of mockery from their peers. I got enough crap as a child for "dressing up as something you are not" without stuff like a drag show making it even worse. And it would have made it worse... at least in the absence of an excellent teacher who actively worked to deconstruct sex and gender stereotypes to remind people "now class, just because a X has Y hair and wears Z doesn't mean they are just pretending to be a Q."