I think we just need better labels to describe the people who are somewhere inbetween. Cross-dresser works fine for those who don't identify as female in some way, who feel that they are "a man with a femme side". Nothing wrong with that label as a way to describe that person. Transsexual, transgender are good ways to describe a person of one physical sex who identifies as primarily the other gender. Nothing wrong with that label either, except what the "Jerry Springer" type shows have done to it. It's the ones who are floating somewhere in the middle of the gender spectrum, like me, that don't have an acceptable "label" to describe us, a one word term that fits. "trans" goes too far, "CD" doesn't go far enough.
For me, it's a dilemma, I don't identify as a man, but I don't identify as a woman either, so I have no convenient label to describe myself. I'm closer to trans then CD but neither really fits me.