I'm going to accept that premise. The reason this is becoming an issue is not restrooms (those have privacy stalls and no one should care). This issue is actually coming to the forefront because of locker rooms (which for some reason are treated the same, legally, as restrooms). There have been a couple of high schools where a biological male who identified as female wanted to use the female locker rooms. People tend to be more naked in a locker room than a bathroom. There were actually complaints from girls about encountering an "intact male p**is"
If I accept the argument that exposing oneself is still an offense, then locker rooms still need to be separated based upon physical gender.
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