Sorry, but sanity is an appropriate criterion for an employer to use in hiring.
I don't entirely reject the experiences of so-called trans-gendered. I view it as a handicap, an abnormality. But with modern Political Correctness, we no longer seem to have the ability to say enough is enough with heroic measures to make things perfect for ever-smaller minorities.
My boss's wife works for a major national chain store. The other day one of the toilets in the men's room overflowed and she had to call the plumber. They went into the men's room so she could show him which toilet needed his work and when she turned around he was peeing in the urinal!
Not sure if the plumber is just an ignorant idiot or he is disgruntled with the not uncommon practice of women in men's bathrooms and he figured he'd give her the logical consequences of that action.