The only term I don't like is 'crossdresser', this word is so bland, matter-of-fact, humdrum, and wishy-washy. I much prefer 'transvestite'. However, the general public does have difficulty distinguishing between transvestite, transgender, and transsexual. To the public we are all trannies, even drag-queens.
These days people seem to believe that you can legislate against anything and everything disagreeable. The way to end something is not to legislate against it, but to withdraw attention from it. There are many people who upon being told that the word '->-bleeped-<-' is now unacceptable will secretively and actively resist being told what words they can and cannot use. They will take a perverse delight in using the word '->-bleeped-<-' to (1) show that they won't be told what words to use and what words not to use. (2) They will also start using '->-bleeped-<-' to deliberately upset fussy, over-correct bourgeois sensibilities. Taoist philosophy says that the more attention you give something(good or bad) the more it grows. So the more you withdraw attention from things the quicker they will shrivel and die.