It's kind of a double-edged sword, as I see it.
For those who live in industrialized countries with socialized healthcare that covers transition for transsexuals, I feel that the TG/TS debate is more an academic argument than it is for those of us in the US or other countries beholden to a private healthcare system. Our situation in the US is one of complete nonpayment for anything related to transition, thus imposing on the transsexual a financial burden which exceeds the means of many. We need transsexualism to be recognized as a treatable physical condition not unlike cancer, diabetes, or even bad eyesight: physiologically based with a prescribed path of optimal treatment. Only when this distinction is made can we move toward insurance parity for transsexual medical necessities. This conversation is pretty much a non-starter if we remain contentedly under the TG umbrella along with people without need of medical intervention.
Now please note that this does not, in any way, mean advocating for special rights in exclusion of the rest of the TG community (i.e., marriage and public accommodations). Equality for all is the most noble goal to which society can strive, and full TG rights are worth fighting for. But the simple truth is that until private insurers recognize the legitimacy of transsexual medical needs, we'll be stuck paying out of our pockets forever while insurance companies reap mad profits. This is why I identify strongly as transsexual and never refer to myself as transgender... I believe in the goal of parity for transsexual-specific healthcare.
Here's the double-edged sword I mentioned: society rarely makes sweeping changes all at once, and we're only just entering the age of transsexual awareness and acceptance (the latter a "just barely"). The LGB part of the spectrum has the stage now as they have for several decades, and I honestly think our turn is next. But will society, who can barely grapple with the notion of lesbian and gay (forget trying to understand bi), be able to cope with TG nomenclature? Or will a TS fight for medical equality (in the US anyway) overshadow all forms of rights for the rest of the TG spectrum, much in the way that we've been bargaining chips for the LGB community to get rights that specifically exclude us? This unfortunate aspect of society may very well mean that either one segment of the TG spectrum wins, or we all lose. My sincere hope is that that's not the case, and we need to be damn careful not to let that happen.
So I say... it's a slippery slope with no easy answers.