I take no hard position one way or the other on gender identification matters because I know someone who is struggling with their grown child's confusion. It is real and my friend does not know what to do or think but love their child. It is very difficult.
To say a man in a dress is probably not necessary in the PC world. I'm somewhat ambivalent but am very concerned about a grown man who identifies as a woman going into the girls bathroom in an elementary school. I'm sure there are other scenarios but that one in particular is a sticking point with me. Single-occupant unisex bathrooms is the answer in restaurants and other public places. It would be good for schools but I understand retrofitting the schools would cost millions and would be disruptive when you have a squad of kids racing to the bathroom between classes.
You can't always get what you want and I'm willing to go pretty far to accommodate people but perfection is never going to be the case and unfortunately someone is going to have to live with going to the bathroom where their genitalia would indicate on occasion.
I don't take a hard position on it either in most situations, and neither did most people. Keep in mind that traditionally we didn't have laws on this sort of thing. People used common sense. If you generally looked like a woman and just went into the stall, did your business, and left, you could go in the women's bathroom and vice versa because nobody knew one way or the other. What I take a hard stance on is forcing hard and fast rules that put people and businesses at risk of litigation and put women and girls at risk of being exposed to penises when they're in a vulnerable position. If you're going to take out your cock and balls, women and girls shouldn't have to be naked around you just because you're delusional enough to think you're a girl. We don't force society to accommodate other delusions and shouldn't do so here, especially when it creates such a major imposition.