You can play with the semantics all you like, but the reality is that some people are being either actively or passively excluded because they’re cisgender. It’s this kind of hypocritical attitude that makes homophobes, transphobes, and so forth think that we want special rights and not just equality. Rather than saying, “We don’t want cisgender drag performers because it makes some people uncomfortable,” wouldn’t it make more sense to say, “We are first and foremost an inclusive environment, and we expect all acts to represent our values, including respect and support for transgendered persons. Those who don’t feel they can live up to this should find somewhere else to perform.” Even prioritizing invites to transgender acts would be acceptable as long as others weren’t excluded altogether.
I understand the need to create a safe place, but sheltering some people from the legitimate (and usually well-meaning) artistic expression of others doesn’t make anyone safer and perpetuates a sense of isolation and paranoia that drives vulnerable people into the arms of cliques like this one. The more the LGBT community enforces its own separation from the world, the less understanding and compassion we will develop in the very allies we need to win full social equality.