okay I've still been thinking about this months later. Here's the pitch.
We open with Chappell and Kermit having a discussion in his office. He asks her who she would like to open for her. She says, well, usually she has drag performers open for her. Kermit worries, says the Muppets don't have anyone who does Drag. Chappell asks "then who did she pass outside?" Kermit opens the door. Half the cast is in drag, waiting in line to audition to be Chappell's opener.
Miss Piggy is very upset because she thinks Chappell is moving in on Kermit/her general persona. Similar to her Ethel Merman dynamic.
Sam the Eagle is very upset because he thinks Chappell is going to be a controversial appearance on the show. Kermit asks him why. Sam admits he's not sure, but he knows people are upset about the drag thing. Kermit calls a friend of his (ideally a Black Drag queen, who is Chappell's actual opener), who tells Sam that drag is an important art form. Sam then gets excited that the Muppets are promoting "real art" as opposed to their normal "low-brow trash" and immediately recants all of his worries about this performance.
Gogolala Jubilee Jugband backing up Chappell performing "The Giver"
Fozzie comes out to perform his set in a dress. Statler and Waldorf boo him, telling him that he's not automatically funnier just because he's in drag. Fozzie is confused, says that it's laundry day and this is what was less in his closet.
Aforementioned Camilla and the Chickens backing up Chappell on "Good Luck Babe."
Just before Chappell and Kermit are supposed to do a sketch, Chappell calls Miss Piggy to her dressing room to ask Piggy to cover for her because something urgent came up. Piggy is delighted. At the end of the song, Chappell shows up with Janice, who is covered in lipstick marks. If allowed, there is a joke about the passenger seat.
Beaker and Honeydew are confirmed to be married.
Gonzo's stunt segment includes him declaring himself a drag king. It is unclear if he knows what that means, or if he's making a statement.
Finale is Chappell doing Pink Pony Club with near-full Muppet cast support, all in drag, similar to Elton John's Crocodile Rock featuring the Muppets.
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