This is an essay by Dana Beyer at the Huffington post, which I read twice, and which I confess does not really reach any conclusions nor really take any hard positions, but does cover a bit of ground and raises some things to think about. Most specifically:
The schism that is uncovered by this debate is between the gay male and trans female communities. It arose very recently in the wake of the Academy Award for Best Supporting Actor being given to Jared Leto for what was viewed by many as a very drag-queen-like portrayal of a trans woman, Rayon, in Dallas Buyers Club. These communities have never really been politically comfortable with one another, and some of that discomfort is now erupting publicly.
(The pedantic professor in me does object a bit to her relying upon Wikipedia as a reference for the etymology of “drag” and choosing what she refers to as a “folk etymology.” The earliest references to “drag” both appear in 1870 (Reynolds’s Newspaper and the London Figaro), and neither they nor the 1887 and 1927 references in the Referee and the Sunday Express respectively, let alone the other 7 historical references, make any reference to drag meaning “dressed as girl.” (source: Oxford English Dictionary). It is almost certainly an ex post facto acronym.)
Anti-Trans Slurs and Drag: Who Exactly Is Transgender, and Does It Matter? | Dana Beyer.