More and more cross-dressers are "coming out of the closet" and if they're lucky, their wives will accept the way they are because most of the husbands have little if any interest in having a sex change, and they simply tell their wives that their little hobby helps them wind down and relax, and will always be their little secret.
If the situation remains as described above, then it's very harmless and the marriage is unlikely to be threatened, but a small percentage of men end up creating a female alter-ego, and want to go out in public and enjoy the reaction they get out from people, and even enjoy being referred to as women, and very few wives will be able to cope with this.
They might be able to live with their husbands appearing on stage in drag, but the idea of their husbands being recognized in the local supermarket whilst dressed as a woman would be too much - and understandably so.
Drag queens could certainly be considered to be crossdressers, regardless of whether or not they only appear in women's clothes and makeup on stage, and although less common, there are drag-kings who often imitate famous male film or pop-music stars.
A faux-queen is a female-bodied person, that is usually a lesbian that enjoys employing similar techniques. Some female-bodied people that underwent gender reassignment therapy, later self-identify as drag-kings although this use of "drag king" would generally be considered inaccurate.
There are quite a number of single-sex theatrical troupes who obviously have to have some of their performers cross-dress in order to play roles written for members of the opposite sex, and cross-dressing, and particularly the portrayal of males wearing dresses, is often used for comic effect onstage and onscreen, and pantomimes very often have women dressed and acting as men.
Transvestites are cross-dressers who cross-dress because they get a sexual kick from it, and most of them are straight and are as horrified by the idea of having sex with another man as is any 'normal' man.
Transsexuals are totally different however and they believe that nature made a mistake and that they are women living in men's bodies, and they will go to very extreme lengths to get out of them.
How far will they go?
Well to become a woman they must go through a long and difficult transition including hormone treatment, painful surgery which involves having their penises removed and a vagina constructed, followed by lots of therapy to help them adjust to their new bodies.
Most transsexuals say that they are happy with the final results but would never have done it, if they'd known how difficult and painful it would be.