I hate to say this but I support the initiative.  Not because of some religious or moral reason, but due to pragmatism. I personally don't care who uses what bathroom, and I acknowledge that some transgendered persons are uncomfortable using one restroom or another, but it also must be acknowledged that other users of the restrooms might also be made uncomfortable by a transgendered person using their bathroom.  Both parties have some standing here.

But my biggest issue is the legal chaos this'll create.  Without a doubt some religious activists will intentionally use the opposite restroom in a disrespectful manner simply to push the issue.  There'll also be the occasional drunken jerk or stalker who'll do the same thing.  Unfortunately, being respectful has become a quaint concept in our society.