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Oh, Jeremy. You'll have to overcome that limitation if you ever want to be in the hate crime Olympics. Imagine, not even able to beat up crossdressers. What would your coach think?

He could at least throw some insults Ozy's way.

He probably assumed some other bully made him wear the dress and anything he would do at this point would be an anticlimax.

Jeremy is turned on, and the comic takes a tragic turn.

I think that's actually a dangling plot thread in El Goonish Shive.

I think I was being optimistic. I don't think "too much of a sissy to even beat up" really exists for a kid like Jeremy.