The movie is a scream, well worth the watch. I doubt that it could be made today with two straight actors, but it wouldn't play the same without these two straight mega-stars gaying it up. And they did a really good, respectful job of it, by the way. They play it "straight" if you would, not campy, so it comes across as the campiest thing you can imagine. You certainly cannot accuse anyone of going too far over the top playing Liberace!
Tangential anecdote: When Romancing the Stone came out and Michael Douglass sprang into the limelight, I was so confused because I grew up playing with my toys on the floor next to my mother ironing and watching the Mike Douglas afternoon talk show. What, now he's a movie star? LOL
By the way, there is nothing wrong with cross-dressing. In fact, everyone should give it a try, just to get a bit of a feel for how the other half lives. But, you should always ask before borrowing someone's clothes and accessories, especially your partner's! (Not that I always did so in my closet cross-dressing days. Guilty as charged!)