I think you are posting a series of arguments that have not been properly thought through and have no basis in reality.
Ultimately, if you can only see your own situation or point of view, you are not going to be able to come up with a system that works for everybody, and confusing the issue even more is not going to help anyone. Both myself and Miriam have pointed out how the system could be made to work in everyone's favour and yet you are not even considering our points of view.
I don't think that you're going to be having 'xy' put down on your passport or your medical records given that you've had three kids... want to swap??
Just how many people are you prepared to walk over to save your ego?
If you've been refused an 'M' on your ID then I suggest you try to get that changed rather than coming up with some cock-eyed solution that messes things up further for nearly everyone else. And besides the cost of giving everyone a karyotype before they can have their ID renewed would be prohibitive.