I think the transgender issues could be greatly simplified by simply testing for fecundity:

If one's body produces sperm or xy....= assign male gender
If one's body produces egg or xx = assign female gender

This rules out all of the very rare hermaphrodites, since no single hermaphodite produces functioning egg AND sperm..or xx AND xy.

So that will narrow down the pool of issues considerable.  The goal is to simplify the pool by operational criteria, not feelings. 

Then tell the "I produce x but feel like y" people that they are what they produce, and that's how our society is going to work.  Go get an operation on your own dime that allows you to produce the other..and when we verify it, we'll change your legal designation."

And for those totally (totally) neutral/neutered/infertile..let them pick any label they want.