I was surprised to see that Guy Pearce, who was in L.A. Confidential as Lt. Exley, was one of the drag queens

Yeah, and the most convincing one!
Priscilla was, of course, Hollywoodized as, uh...To Wong Foo - Thanks For All The Fish or something. Occasionally you get the impression that many movie-going USns treat foreign films as others treat foreign language films - something challenging to watch, more worthy than entertaining.

But I think that's changing, albeit slowly. I'd assume that Crouching Tiger, Hidden Dragon, for instance, took off in the US as much as over the Pond. And then Jackie Chan has done a great job of popularising [dubbed] HK films.

Strictly Ballroom is my favorite of the bunch
Might be mine, though Priscilla is very close. Seen Moulin Rouge (by the same director, Baz Luhrmann) ? Definitely my favourite recentish film.