I think there’s a difference between a “transsexual” and a gay person. Until about 15 minutes ago, “transsexuals” were considered to have a major personality disorder. I’m not talking about hermaprodites, born with two sets of genitalia, who are a medical problem, but about people who announce that, appearances and chromosomes to the contrary, they’re really the opposite sex or maybe they’re both sexes.
These people are way too unstable and self-obsessed to be in the military. They are endangering everyone around them with their personal fantasies and making it all about “them” and not about the common project.
Gay people - and I say this as someone with many gay friends - may be somewhat maladjusted, but as long as they can focus on the project, they can function. The only project transsexuals have is their own fantasy life and there’s no way that can work with the military project.
I think your assessment is good.