Completely agree with you. In my opinion, I believe that cd's are (for want of a better word) using clothes, wigs, make-up, etc to externalise (project) something that resides inside ourselves. One way I look at it is that I belong slap bang in the middle. My birth gender is male, yet I don't regard myself as a man in the same sense that I believe other men do. I can't say for sure, because I can't speak for any other man, but by the same token I can't speak for women either. Hence why I position myself somewhere between the two. Not completely masculine, but not completely feminine either. But in embracing my feminine side, I dress and present myself in attire that is traditionally associated to the female gender. In essence, I'm projecting my inner self externally.
As far as the general population getting confused and thus trying to rationalise their own confusion by questioning the sexual preference of a cd, I believe that's just people trying to put people into boxes in an attempt to make it easier for themselves to overcome their own confusion. If you, Marleena, are right and such people just assume that a man dresses as a woman to attract men, then it says more about their own attitude towards women (and more specifically women's fashion) than it does in regards to cd's. For such an attitude would be akin to saying that women's clothing is designed solely for the benefit of men - to make woman attractive to men. An egotistical attitude that completely ignores the fact that women do not dress solely in order to attract men. A statement that I think (hope) we would all agree on. And I believe that exactly the same can be said of cd's. In short, we dress the way we do because we like it. We don't do so in order to appeal to the conceptions of others. Just like women will, we simply dress for ourselves.