Well, one could very well say the same thing about trans advocates' apparent desire to radically restructure society with changed language, changed criteria for how identity is determined, etc.
You can skip all that. If you pass, fully, for whatever the criterion is, do whatever you pass as. If you don't pass either way, use a gender-neutral option. Done!
No need to radically restructure anything at all. The only fights remaining are over providing credible gender-neutral options.
Sound reasonable?