I would be a little offended by "dressing in drag" because for me this means they do not view me as a woman. If anything I was dressing in drag my whole life, not now.
Maybe I'm a little too sensitive to things like that. I really don't like when people cannot comprehend that we are not really crazy guys who want to play dress-up all day so much, that we change our gender marker and go through surgeries so the clothes would fit better.
That's why I don't like the diagnosis either, because it is classed as a mental illness and that basically says that I'm a very-very sick man who thinks he is a woman. And because they can't "cure" me of these delusions they let me change my gender.