The second part of the argument bears some credibility. The first part, however, bears little if any at all. In the instance of a postoperative transsexual, there is no penis. Therefore, there is no source for aversion. Additionally, prolonged use of female hormones, anti-androgens, or a combination of both, has already caused sterility and impotency.
Some fears are simply irrational.
The second bulleted item suggests that one cannot be anatomically male and psychologically female. Some butch lesbians even wear a concealed prosthesis of the male appendage. It's called packing. And in a community that supposedly fears the male appendage, it's acceptable. So there appears to be a selective comprehension of the fact that sex and gender are not always the same.