Well, you do actually have the exact same tissue that comprises a cis male's penis--it's just smaller. But it's formed exactly the same, right down to the glans, foreskin, and erectile bodies. The only thing it is missing is a urethra--and size. Even on T, having a penis in the 'normal' range for cis males (about 3-4" flaccid is average) is unlikely, but not unheard of. That said, there are cis males who have small penises. There's a great site that shows photos of penises of all sizes, flaccid and hard (probably shouldn't link it). There are 2", 1.5", and even a couple 1-inchers (flaccid). It happens. Go look up the condition called 'micropenis.' Tiny penises. They happen. To us and to cis males, too.
Prior to T, I did my best to ignore that area because mine was small to the point of seeming non-existent. But it wasn't, and it grew on T, and... now I'm really quite happy with it. No, it's not "normal" adult size, but like I said--there are adult cis males who don't have that, either. It helps me a lot to just think of it like that.
As for producing sperm and ejaculating... yeah, you've got me there. No solution to that one. Personally, it doesn't bother me a whole lot at this point... I don't care much about producing sperm because even if I could, I'm not sure that I want kids. Even if I could produce sperm and have my own biological kids, I would lean towards adoption (just... why bring another person into a crowding world when there are already so many kids who need a family?).
And there is a bonus for not ejaculating: no cleanup.
Anyways, that's just how I deal. Hopefully you can find something that works for you.