What's the Problem Germany Is Trying to Solve with its New Sex Designation?

I've been reading some of the media and blogger coverage of the announcement that starting November 1st parents of some children in Germany will have the option of leaving sex assignment as "indeterminate" on their newborns birth certificates. For whatever reason I also decided to read some of the comments which follow these stories.

Given that a big part of of the problem this legislation is trying to address has to do with the constant conflating of sex and gender, it's disappointing that s...