Basically, I don't think humankind needs the concept of gender anymore. At this point it perpetuates more problems than it sweeps under the rug.
We're in the midst of a revolution when it comes to thinking about gender and sexuality and the like. But I think our traditional bipolar understanding of gender is making everything too confusing.
I think about it all the time whenever I see children who "make the switch". So the story goes that little Avery never liked traditional boys' things and wanted to wear dresses and play with dolls instead. So his very understanding parents decide to treat Avery as a girl and call him "her", and let her follow her heart and dress and play the way she wants. 'Aww', right?
But...why does Avery suddenly become a girl just because he likes dresses? I mean, on the other side of the street, we're telling girls every day that they are not defined by what they choose to wear or how well they fit into traditional feminine stereotypes. If a girl doesn't have to like dresses to be considered a girl, why is a boy who likes dresses automatically considered a girl?? Is dress-liking intrinsic to the female gender or not? We're sending out contradictory signals here...
The thing is that humans, try as they might, simply cannot conceive of gender without referring to the traditional male-female dichotomy. And pretending that we can causes problems like this in all kinds of places, probably in some that I'm not aware of...
So I think that the issues could be resolved in this manner:
1. Decide that gender no longer exists (It's literally a set of stereotypes attached to someone's sex. Do we really still need that? People are who they are, end of story.)
2. Consider existing gendered clothing as "styles" (I don't want to see lipstick and tuxedos disappear any more than the next character designer. ^^ So why not just let anyone wear them, and instead of calling it crossdressing, just look at it as someone dressing "goth" or "preppy"?)
3. Drop the pronoun debate and just reserve 'he' and 'she' for sexes
^Number three is the most problematic, I can already tell. XD But, in a perfect world, if someone who is called "he" can behave any way they want without judgement, why should they need to be called "she" or "they" to feel more like themselves? If he and she are simply biological labels having nothing to do with societal expectations, then they lose their personal importance. Honestly, if English didn't have gendered pronouns (like loads of other languages all over the planet) this wouldn't even be an issue...I guess that's also something we could try to change, although it'd be much more difficult.
I realize that humanity is currently NOWHERE NEAR mature enough to be able to put these into practice. And there's a lot of gendered pseudoscience going around that would get in the way of something like this...people still scream that "men and women are not the same", but how much of that is actually due to biology and not societal breeding? I have yet to see anyone elaborate on their screaming to that effect. Why not try treating them as the same for once, and see what happens?
In conclusion, genders and categories create little boxes for people to fit in. And we like our little boxes so much that if the boxes we have don't fit us, instead of breaking them down, we create even more little boxes to put everyone in. So comfy~
But I'm saying that that approach isn't going to work. It's just creating confusion and sending mixed messages. I hope someday we can just burn all the boxes and come together as one.