Sorry if what I write here is obvious - just thinking out loud on an important topic -
Maybe this whole issue is not settled for us because we don't take the time to resolve all the issues when our personal fears and concerns arise. We have moved forward a lot on gay rights etc but even the fact we have this thread means that trans, or certain forms of trans preference have still been considered outside the norm and unfortunately now get positioned somewhere in some sort of "normal acceptability" spectrum after gay and before something else we haven't come to terms with yet.
Surely the issues of self id can be tabled, discussed, understood, accommodated, including in law and then accepted. We need to resolve the details in these complex topics.
The issue of abuse of the law in order to e.g. access female private spaces etc. needs a layer of rules that can best represent what is fair, accommodating and manageable (I know that is complex and will result in some compromise). It should be dealt with same as any other law that gets stated and then gets broken. That issue is important but feels a bit of a result of the core of this.
It's my view that we need to progress to a level where everyone should be allowed to be their own sexuality. We have had a tendency to leave important minorities, that we should understand, accommodate and accept, out of what we decide and accept as normal. Worse still, we don't fully understand the impact of this, where normal people become excluded, confused, abused, scared, full of self doubt and resentment etc. based on the impact of others views of their normality.