I normally don't like male crossdressing, either (I can dig female if it's important to the plot, however). But if it helps, Sakura also gets to crossdress (although she's more on the cute and Tezuka-like (http://en.wikipedia.org/wiki/Princess_Knight) factor).

I interpreted it at the day as frustration on his part for trusting a suspicious person just because she's so purty and makes her feel happy. Funny enough, another suspicious person shows up at the second arc, and Sakura befriends them immediately, and that time Li DOES get jealous romantically.

Kaho is adorable <3 I started liking her after a re-read because I watched the anime first and she's sort of aloof there. It's too bad most people dislike her because of her love life (her new love interest is... you'll see, that one is really odd)