I mean, honestly, there's a good question to be had: why do we even need gender on a modern ID? Assuming a reasonably up-to-date photo, there isn't even a whole lot of purpose in listing descriptive information about the person. And that's before we talk about other stuff that you could list instead or encode as data into a smart ID if you really want some descriptive data.

Unfortunately, I agree with you that while fixable in the abstract, we're not getting anywhere in the modern USA. Can you imagine what would happen if a politician suggested removing gender from IDs?