That sums up the general debate about Charles Busch movies: are they gay movies?
When they were originally plays, Charles would play the lead in drag, and have a romantic scene with the leading man, and the community would automatically accept it as "gay" genre. And in Die Mommie Die, at least there is the gay son getting it on with Brandon from 90210. But in the film for Psycho Beach Party, Lauren Ambrose takes the lead role that Busch took on stage, and Busch wrote the role of the police woman for himself specifically for the film. It's a campy send-up of beach movies and 60's horror flicks, but it's not really a gay movie, just written by a drag queen.
So I guess it's gay by association?