I think its possible some women just cannot accept that the 'man' in their life has this whole other side of him that they never knew about. It could also be that the CD'er husband has a severe attack of pink fog and the wife just cant cope with it and some women it could well be a religious belief - the marriage vows do say "do you take this man...." not "do you take this man who is occasionally a woman....." . I also think that it could be to do with the degree to which the husband expects or needs to dress - for some it is an occasional thing, for others they want, expect,need to dress 24/7. I have to say that if my husband felt he needed to dress 24/7 I dont know if I would be able to stay in the marriage.
As to you second question - yes, its weird as hell - well at least it was to start with but its really not a big deal now.
As for the "its ok but not in front of me" thing - I wonder if this is partly because the wife feels that if they dont see it they dont have a picture in their head. Maybe they worry that if they actually see their husband dressed as a woman they will lose respect for him as a man. Some woman really need a full on macho image man and to see that man in women's clothes could just destroy that image for her.