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eternal_neophyte comments on The horrifying importance of domain knowledge - Less Wrong Discussion
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What's the expected ROI for making all this effort to accommodate a tiny minority? And what of the ethical implications concerned with enabling what could very well be a mental illness?
How large is the investment ? Do websites need to have a gender field? Not including one would be a slight saving. It might make sense to just have an optional title field.
Knowing gender means that it's possible to use the proper pronoun. Having a lot of demographic information is also useful to understand user behavior better. You can show women different ads then men.
You could ask for preferred pronouns, and possibly take the risk of having a text field for pronouns that aren't on your list.
I have no idea whether you'd do better with ads that are targeted to preferred title and pronouns rather than to stated gender, but you might.