I don't feel like the state of Texas feels otherwise, I see it as more the laws and regulations not keeping pace and there being a general lack of transgender understanding. Everyone probably saw the inherent unfairness but went by the rule book to the letter.
I feel like it's on par with the ridiculous "bathroom bills" that require trans people to use the facility of their birth sex. Too often I think people equate transgender to being a transvestite/cross dresser.
Blanket politics and hard rules will probably never work to address situations like these. Hopefully a bit of common sense and individual review will prevail in the end.
Good points.