After reading Babbit's quotes expanded upon, posted by jacksavvy_ccs (http://blog.lib.umn.edu/giust002/queercinema/2012/03/feminization-of-camp.html), I think Babbit took a kind of backwards way of explaining her intentions behind the use of camp in But I'm a Cheerleader.
Babbit claimed that she wanted to 'feminize' gay male-dominated camp by adding real emotion and romance to the film. I find it interesting that she is trying to do something revolutionary in the world of cinema, let alone queer cinema, with such a conservative attitude. Emotion and romance is not exclusive to a single gender. On a side note, the balance of 'real' moments and campy moments caused the movie to be very enjoyable and relatable, more so than John Water's Female Trouble (not being too excessive in the use of excess), so kudos to Babbit for that.
However, my personal take on the "feminization of camp" quote was the mockery of traditional gender roles. Though this is done in other camp films, like Female Trouble, I felt the feminization came into play in the mockery and excess of domesticity, a traditionally feminine characteristic. Ignoring Babbit's real intention behind reclaiming camp for queer women, I think that the irony that lies in making an over-the-top performance of simplicity and domesticity was fantastically clever.