Both of your points are highly valid and relevant

I believe the Economist writes that studies of prepubertal kids who believe they are Trans show that, if allowed to progress through puberty, they are usually (but not always) glad they did not, and usually (but not always) turn out to be homosexual instead.

That suggests that medicalizing this prepubertally likely causes more harm than good. One major issue is that in the United states, since affirmation is the one allowed response at present, there will not be any advancement in determining who will end up still wanting to be trans vs realizing they actually did not... hopefully Europe advances that science.

In the meantime, any parent who has a child who identifies as Trans would be unable to find someone willing to explore that identity without firmly trying to answer the question for the child. The battle lines are drawn.