What we know is that there has been a large percentage increase in the number of people identifying as queer.
One hypothesis is that this is because there was previously a certain percentage of the population who was queer, but the societal cost for identifying as such was sufficiently high so as to prevent them from doing so. It is therefore the lowering of the societal cost for identifying as such that has allowed this percentage of the population that was always queer to freely identify as such. Your explanation is that that is the only factor and it is as simple as that.
The hypothesis that you're dismissing is that not only has the societal cost for identifying as queer diminished, but that it has actually transitioned well into a net benefit in many communities (i.e. woke Gen Z, and others). Therefore, many of the people identifying as queer are doing so not because they are inherently queer and now free to identify as such, but rather that they are not actually queer, but see social advantages from identifying as such. The claim here is purportedly substantiated by the fact that the largest increase has been in those low stakes identities such as bisexual or demisexual, wherein the person can basically continue to operate normally as a heterosexual while claiming the social advantages of being queer.
Now, as I said, the answer is that this is definitely both. I don't, however, expect you to discuss something like this in good faith, because you seem quite keen on reducing it to your pet conclusion. I'm especially not interested in what I'm anticipating, which are a myriad of claims as to how being queer is still a marked disadvantage. I'm sorry, but within the circles for which we've seen explosive growth in identification, it very much is not.