I can see both sides of this. I agree that we need a more concise term for medical practitioners, but we have that already. In the area of law, it should not be a factor. Instead of listing all of the possible areas where discrimination is not allowed, i.e., employment, housing, education, etc. ad nauseam, it would be simpler and more inclusive to just state, Thou Shalt Not Discriminate. Discrimination is discrimination regardless of the "protected characteristic". The concept of equality is built into government constitutions in many countries.
Within our own community, the LGBTQI2S+++ intends to include everyone who is not cis and heterosexual. That, in itself, is divisive and creates an us/them. So it is partially our own fault.
Do we really need to spell it all out? The LGB part is a sexual preference, not a gender identity. Yet, for the sake of inclusivity, we lump everyone together. That is, everyone except... them. But why do we need to classify everyone based upon some characteristic that is widely recognized as a fact and just part of being human? For medical and scientific reasons, sure, it makes sense. There are valid reasons for it.
But within the workings of society, I see no need for it. Racial profiling was/is very common in law enforcement for identification purposes. Then it was abused, and in many areas the practice was banned. It was still used for identification, but training was provided to mitigate the appearance of racial bias.
I think, as stated before, we may reach a point where society doesn't care what is between your legs or how you dress. It will become unimportant. That will involve educating the masses that the statistics show that we are a very small part of the population, and not the ones committing the offenses being alleged. The media could help with that, but they will fan the flames in whatever direction the wind is currently blowing.
Just like the bias in the past against blacks, Latinos, Asians, Muslims, and Jews, this too shall pass. There will always be bigots, but hopefully, over time, they will become the minority. I think we just want to see that happen in our lifetimes. It may not.