Jdg, I agree with you. Don't think it would have been appropriate for HS age kids either.
I think the real problem is two fold, first it was not a lip sync - or a show the parents went to see, second it was 3-5 year olds and the parents are there for their kids with that in mind - probably was a little shocking.
I would not want to leave my 3 year old in this mans care, not after performing in drag at a completely inapropriate time.
And for goodness sakes, just because there is worse on TV - why does that mean it was appropriate? Come on.