The only people freaking out about what's between people's legs are the muli-gender activists who have removed "biological gender" from their vocabulary and will only refer to someone's sex as the gender "assigned at birth." They are, quite literally, denying reality.
Um, they're not the ones who scream "the sky is falling!" at the very idea of seeing [or their children seeing] a flash of nudity on the part of the opposite sex.
The people you refer to are outliers, not mainstream America, and you know it. What you don't know is whether someday, research will validate their 'nutty ideas'. It would be great to find some way to resolve the ambiguous cases [at birth], the ones that could go either way.