I wouldn't say that they have better taste specifically (what constitutes 'good taste' in modern culture beyond having an astute awareness at niche cultures to appropriate from?), rather they're more liable to taking risks because, for the most part, they've already been excluded from popular/common culture. Some even take it so far as to find a glamour in being different- I mean, a queen can only be ostracized for so long before they begin to revel in the attention they get for just looking different.
Additionally, outsider culture clothing is always at some point taken by the mainstream and made "cool" so those who have been outside of the common culture are then perceived as originators of the "cool".
That being said, there are queens I know who dress from tragic, to late, to tacky to "straight"/common/basic, to gorgeous and amazing. There's a lot of people here in NY that, if anything, try very hard. It's usually more misses than hits, but at least they try, which is more than most straight people can say.
From my personal experience, the gay guys always look clean and nice, with their hair done, and outfits that actually look like some thought went into putting them together.
The straight guys usually look (and smell) like they just rolled out of bed and put on whatever smelled the least horrific.
) but most are good....ish. 
