Crossdressing.

[Rahcel]

EDIT: The post this was in response to has been deleted.
You bring up valid arguments, but I have counter arguments.
One: True gender identity: This comes down to a mainly RP standpoint, but affects real life as well. What if the character is, say, male by birth and identifies as female? Not even to mention that there are more than two genders. Agendered people exist, and can easily have their own representation ingame by simply removing restrictions on wearing certain pieces of gear.
Two: Guessing the gender of the character: Should this really matter more than the player of that character wishes? If they choose to present themselves as, say, a male lalafell in a dress, why should it matter to others what their actual gender is? Just look at the cute lalafell in a dress. If you really do need to know, there's nothing stopping you from kindly PMing the player of that character to find out.
Three: It's disgusting: This is opinion, which you are fully entitled to, but does not present a valid argument against it.