I'm not a huge fan of labels. To me, it seems to add no real distinction. It is saying, basically, "What you thought the unmodified version of the following word meant before you learned some people feel that there is something very wrong with their life and it has to do with a mismatch between their body and their identity."
I don't know what the solution is. I think the LGBTQ community sees high levels of trauma due to social rejection and abuse, often from people very close to them who are supposed to protect them, not hurt them, and I think this complicates working out solutions.
But I think some of what gets done is probably not really in their best interest and it's hard to discuss that because any critique of current practices gets interpreted as "You are one of my enemies!"