Looking at it from different perspectives, Oregon allows illegal immigrants to receive drivers licenses. While that seems trivial it also allows them to open bank accounts, apply for loans, and live under the guise of being legal citizens when it's convenient but still get the lovely federal assistance for things like free education with no compulsory citizenship or other contribution to the US.
Now, 'guys' are having babies. I'm not familiar with much of Oregon's law but mixing up sex roles could effect things such as insurance and health care.
My problem is with Oregon declaring a viable woman to be a man. Sure, she's a masculine figure, but her sex is still a woman.
Again, gender= self identity, what you 'feel' like you are. Sex= what organs you have. You can't "make" a penis any more than you can make a vagina. Thus, turning a penis inside and using the nerves in the head to make a sensitive area similar to a clitoris does not a woman make. Growing facial hair, and having a swollen clitoris doesn't make a man.
I took my family to a Sacramento Monarchs game about 8 years ago and the stands at ARCO arena were full of people with some huge sexual identity issues. They end up just looking silly. But IMO it's pointless to try and force people to dress/act appropriately. If I had a male relative that came to a family function in a dress I would try and not laugh out loud but you just go on with things as best you can and accept people for who they are. As long as they are honest and hard working I figure it could be a lot worse. They could be a criminal in prison and IMO that would bring real shame on the family.