This isn't a good experiment unless the people involved have no knowledge of the child's birth sex.
Sure. This is far from perfect.
Also, as far as I'm aware, there's about one prominent case study describing this, and as such I think it's misleading that you use the word "frequently".
I presume that you are thinking of the David Reimer case. While that is the most prominent example it is not the only one. In fact, that case is actually is one of the less useful examples since there were many complicating factors. But there are a variety of other case studies. See, e.g. here.
Upon reading Eliezer's possible gender dystopias ([catgirls](http://lesswrong.com/lw/xt/interpersonal_entanglement/), and [verthandi](http://lesswrong.com/lw/xu/failed_utopia_42/) and the other LW comments and posts on the subject of future gender relations, I came to a rather different conclusion than the ones I've seen espoused here. After searching around the internet a bit, I discovered that my ideas tend to fall under the general category of "postgenderism", and I am wondering what my fellow LessWrongians think of it.
This can generally be broken down to the following claims:
EDIT- Due to some really insightful comments;
I replaced men being prone to aggression as a negative, with men being prone to suicide.
I made the verbiage a little more explicit that no one would be *forced* to change, but would seek out the changes that transhumanism would have available.