@Connor: this is about intersexed people, not transgendered
Connor, I don't know where you got that statistic from but this is about intersexed people anyway - the article states that this does NOT apply to transgendered people. Those making flippant comments about "oh I'd like to change my birth date" are a bit late to the party - people have been able to legally change their gender for a long time in most countries. This is a different issue.
A quick look on wikipedia reveals that depending on the definition used, the number of intersex births ranges from between around 0.018% to 1.7%. Most people think they have never met an intersexed person because routine "corrective" surgery and hormone therapy has been used for many decades in an attempt to sweep the condition under the carpet. Intersexed people have always existed and western attitudes to sex and gender have been out of step with nature for too long and this is the next step in correcting this.
As for practical problems, this basically comes down to toilets and language. The first is easy enough to solve: allow intersexed people to use disabled toilets (or any toilet) until old-fashioned countries like the UK catch up with forward-looking countries like Sweden where unisex toilets are common.
Secondly, in English, there are already a few neologisms allowing people to avoid the he/his she/her problem, the most popular being zie/hir. It sounds a little clumsy when you first hear it, but if this tiny detail is the only barrier towards recognition of intersexed people then I think we all just need to get over it. Is learning a new pronoun really so much effort that it means intersexed people should instead be goaded into surgery and lifelong hormone therapy, forcing upon them a gender which is discordant to their nature?
Admittedly, we could do with a shorter way of saying "intersexed person".