They are CHILDREN. What is so hard to understand that they have no yet developed sexuality? The fact that their parents are sending them to such a session is most disturbing.
When I was a kid, I remember my teacher reading to the class books, and I also recall going to the library and have the librarian read books to us as well, or show us a movie in the libraries theatre that we enjoyed. If I was a kid and saw a drag queen reading a book to me, I would've been so taken back by their looks, that I wouldn't be interested in the book, rather why the person reading the book looked weird.
Why should children today be any different?