In the context of Thailand and of Thai Buddhism, of course it is a cultural challenge to be confronted to monks making dance moves, singing and wearing wigs, because it is a direct violation of their vows. And every Thai would know that monks have taken vows not to sing, dance, listen to music or even watch comical shows.
The Theravadan school places great emphasis on these vows, perhaps more than other schools like the Tibetan schools, and this would chock less, I am convinced, if these actions were performed by Tibetan monks.
This is why it seems most of the replies here on this topic do not seem to think that this is damaging.
In the context of Thailand, it may be damaging indeed as it degrades the monk-hood, it desecrates monk-hood in young minds. Now, isn't that damaging?