Starting something.
I did identify as transgender for a number of years between crossdresser (mostly because I didn't want to be considered mentally ill) and recloseted (because I just couldn't cope). When I came back out of the closet, I used the shorthand "trans" to describe myself. I actively identified as a transsexual and used both "transsexual" and "trans" as part of my gender identity.
Shortly after I started my transition, people began reading me as male. I guess that liberated me. I stopped identifying as trans anything. That is, my identification is male, although I still use the "trans" shorthand and the term "transsexual" to refer to my history and/or body. They are useful terms that way. But I no longer use them to refer to my gender identity and don't really feel a connection to them as part of my core identity. They're more like handy describing words--they refer to who I once was and where I've been, sort of, and they refer to my atypical body, but they do not define my gender. I see them more as terms that describe my condition, not my core identity
I never ever use the term "transgender" to refer to myself anymore, and I confess that I wince when anyone refers to me that way or uses the term "transgender" to refer to someone I think of as a bona fide transsexual (as in "Chaz Bono, a transgender..."). But in the end, it's each person's choice how to label himself or herself--or whether to label at all. So if Chaz Bono (or Joe Blow, for that matter) announced that he considered himself transgender and wanted to be called that, I would respect it. I might still cringe inwardly, though, because I don't want anyone to refer to ME that way.
I do believe that "transgender" is a useful umbrella term and concept, even if I don't particularly like the word or use it to label myself. It would be nice if we could find a different term, but even if we did, some people would be unhappy with it, and some people would insist on deciding how to label other people against their will. So I consider this whole TS vs TG issue more as a problem of human nature, not nomenclature.