At what point does it end? Depending on if you are in Europe or in the US, the number of these "identities" varies greatly. I understand that one site in Europe lists 71 such identities, and does not give you the option of male and female. If you do press forward with this, I strongly argue that EVERY IDENTITY be give their own restroom. That way NO ONE would be forced into a restroom with an IDENTITY that they do not want to be with.
Additional issues include 300% higher suicide rate than two gender kids. This rate does not decrease even in the most permissive and accepting situations.
From natural standpoint, our species is two-gendered. While there is an occasional, genetic anomaly, the actual occurrence is not sufficiently large that would justify this extensive and self-declarative policy where anyone could make up whatever they or a parent wants. I would strongly argue that sexuality is a learned response pushed by our media. A media that glamorizes the different for shock value.