I’ve been watching it again, I had the impression Steve stopped doing drag cause he married Mimi and whatever reasons came up from that.

Yeah, I think that might have been the implication, but they still should have addressed how first off that's a fucked thing to ask of someone and if they went that way they should have at least addressed how it was a very big deal for Steve to make that adjustment for her and not just dropped that aspect of the character in later seasons. In addition to questioning why Mimi had a problem with it.

It put out in the viewing audience how you can just request Queer people quit doing queer things and they can or should respond with "Okie!"` ^.^