first of all, I am not a drag performer... I am an actor who is in drag playing a role. Unfortunately this is my Broadway debut, so no awards for me or notices for me for being EXTREMELY versatile (after all, I have played roles like Bat Boy, Tony in West Side Story, Homer in Floyd Collins, etc.)
I will know have to do what most other actors don't: try to fight for something traditional to play, whereas actors are always fighting for something edgy.
The point of the flashing, and it IS necessary, is to create this kind of reaction. It worked. You said that it doesn't matter that Lucy has a penis - and thank God you did say that, because that was the point of showing the audience. The gender isn't important. Whether or not you arrive at that conclusion conciously or not isn't important :) Also, it's a brechtian device to show Polly and then turn and show the audience.
I have been incredibly frustrated that people didn't read the bios in the playbill, and just assumed that I am a downtown drag performer. It's a little disrespectful when there is plenty of info out there about all of us in the show.