Second, the world hasn't gone mad. The world has finally started paying attention to those who are different instead of ignoring them and hoping they'd go away. "Transgenders" aren't a new fad or something. These people have always been around but have been forced to hide their identities out of shame and fear. Consequently, they received little if any positive media attention until recently. It's not about the clothes you wear. It's about what you identify as on the deepest, psychological level.
You may not understand how that feels. That's OK. Neither do I really because I'm a straight, white guy with zero problems. But I can sympathize on the basic human level, and I can accept that we should do what we can to make people feel as comfortable in their own skin as we can. I know that is how I would want to be treated, or how I would want my children to be treated if they were "different".