I was giving the Lee Lemon thing as an example where I agree Kif’s reaction was homophobic, saying it was the only such example I could think of.

The patrons are responding to the way he’s performing. Zapp is broadly a parody of Captain Kirk and this scene was a reference to William Shatner’s infamous spoken word cover of Rocketman, at least until Zapp fully broke down and started wailing the name of the woman who hates him. The only reason the song is Lola is because that’s a famous song you can easily swap Leela’s name into.

I swear I remember a Kif reaction, too, by the way.