I'm speaking here as an outsider (I don'tidentify as LGBTQ), but it seems to me that whether the issue is gender or race or religion, people tend to be most comfortable with binary opposition (us vs. them). The trans phenomenon (again, I'm speaking only as an outsider) tends to threaten people who rely on binary opposition (Men's bathrooms vs. Women's bathrooms; Men's sports vs Women's sports).
It's apparently difficult for the average person to overcome binary reductionism, but (again, I'm an outsider), an attitude of overall acceptance would seem to be the most humane approach to take. People should be allowed to follow whatever path they are drawn to.
I'm particularly amused by the fact that most of the people expressing indignation against trans identification were never in favor of gender (or racial or religious) equality in the first place--e.g. since when have people like Tucker Carlson and his torch-bearing followers ever cared about women's sports?