Werewolves of London

This song is clearly about Zevon's struggle with homosexuality. The werewolf simply serves as a masculine image. In the first stanza Zevon discovers the werewolves, in the second his explores his disgust (better not let em in), the third forms a sort of tacit, tepid acceptance and admiration (I'd like to meet his tailor) and finally he ends the song by rejoicing in his attraction to other men (his hair was perfect). Sub-textually, the performance of the song is hyper-sexual, especially in the video: Zevon sneers and pouts in a hilariously over-sexualized parody of himself.
The men Zevon finds himself attracted to are portrayed as werewolves simply because he's afraid of his potential homosexuality, thus they are painted as monsters. Towards the end of the song, as Zevon inches toward acceptance, the men cease to be werewolves and become Lon Chaney "doing" the werewolves of London (acting like a homosexual) with "The Queen" (a male cross-dresser).
With the final line Zevon admits his attraction to these no-longer monstrous characters and comes to terms with the idea being mildly homosexual. After all, what subset of the male population dresses well, hangs out with queens, drinks pina coladas at Trader Vics and has perfect hair? Not gutter-punks.

A brief aside: If you think in depth analysis for a song like this is pointless, more power to you. But I don't know why you feel the need to confess it here, repeatedly.