Seems to be a cultural difference of how to achieve equal rights... in USA, people wish to transition and have all legal documents reflect their new gender, in India, for example, where there is history of hijra, they are trying to attain legal third gender status.
In some ways, I'd like to see a combination of both. I'd be happy if all my legal documents could say other instead of M or F. For that matter, why our ID, etc., even has to state gender at all is in question. But that's just me, whatever method works for everyone else is OK too. As long as we have equal rights.
Z