I think people are entitled to their curiosity (it's what makes us human), and I don't see it as a big deal if people stare (as long as it's not to point out and make fun of the subject). I, myself, like to get my eyeful of the abnormal, or extraordinary. It's enlightening, at times. I think it's all part of the mystery of life, and the majesty of nature. (Fyi, I'm just talking about quick, stolen glances, since outright staring would make anyone uncomfortable).
I'd certainly have to question a dude's level of common sense, if he's born a beefed-up sailor guy who needs to identify as female, and he's annoyed at people for being uneasy or confused. It's just part of the game.
And I agree with what PBJ said though, I wouldn't wish gender-confusion on anyone...it can't be easy, being ostracized from both sexes, and it's certainly not cheap, if they feel committed enough to reassign their gender.
That said, so far, I think people around here, and around the water cooler...are handling this news story with a lot less alarm than I would have expected. Maybe times really are a'changing (for the better)?