Wow... isn't this fun? ;-)

Think of it from an outsider's point of view. They know nothing about trans-anything. They don't now about trans-x rights or anything like that. They can see 5 kinds of people:
1) obviously male
2) apparently male but looks rather feminine
3) can't make mind up what it is
4) apparently female but looks rather butch
5) obviously female

Now, how are they going to react to these? Obviously, it will depend on their own gender. 1 & 5 are easy. 2 & 4 are less easy, but in most cases they will be accepted. 3 can be really confusing and most muggles will try to avoid catching their eye or speaking with them because it makes them feel uncomfortable.

How will Mr(s) muggle react to finding 2 or 4 in their own toilets/restroom/whatever? They'll almost always accept them providing that they are using the facilities in the usual manner. Yes, you'll get occasional people who will get upset or make a fuss but most people just simply don't care. DONT try to use a urinal while wearing a dress, it's difficult, looks stupid and is a dead giveaway. :-) The argument that a MtoF crossdresser shouldn't use a female toilet is a false one. Rules and locks only restrain honest people. A GG in a female toilet is FAR more likely to be attacked by a "straight" male than by a crossdresser, just because there are far, far fewer crossdressers. Anyway, who is going to issue the badge that says "I am a Pre-op Transsexual so I can use the Ladies"?

To your average muggle appearances really don't matter that much. They can accept blurred boxes. If 2 & 4 are crossdressers or transvestites or pre-op transsexuals they don't know or care.
Officialdom (in all its forms) is the real problem. That's where you have to fit one of their boxes.

As I pointed out earlier, anyone who passes or attempts to pass as the opposite gender to that of their birth is automatically transgender by definition. We may not like that, but that's the name on one of the official boxes and there is little that we can do to change that. A few departments can sub-divide that category to some extent, but that umbrella term is going to stay because it's so convenient. You are NOT going to get transsexuals put into a different box from transgender though, simply because, by simple observation, you can't tell an early pre-op transexual from a crossdresser or transvestite. They may be the same anyway.

If you live somewhere where you can have ID that suits your choice of gender then that's great! You are extremely lucky to have such an accepting system and I hope that you appreciate it. I am a crossdresser. I would love to have a bus pass that allowed me to travel en femme without revealing my male identity (it states my name & has a photograph), but that isn't going to happen within the forseeable future. The paperwork/computer/little Hitler won't allow it. I can travel on the bus as male or not travel on the bus.
OK, I'm "lucky" to be "just a crossdresser", but I'm not allowed to drive for medical reasons. I depend on those buses to get around. I can't go shopping en femme to a big mall simply because I have to travel as male. I daren't go shopping en femme locally without risking my job and, possibly, putting my family at some risk. I don't live in a city and a TG person tends to REALLY stand out around here. I don't think we have anywhere near the sort of acceptance that the US seems to have.

If you are IS or transsexual then, believe me, I really wish that you could gain full acceptance. It must be extremely difficult for you.

I hope that we can keep any internal squabbling to this area. It seems such a pity that it is happening at all.