10.1023/A:1019724712983
The correlation between GID and depression was modest, but significant (r = .20; P < .05), whereas the correlation between GID and separation anxiety was nonsignificant (P > .05).
10.1111/j.1440-1819.2010.02118.x
Comparison with previous reports on the psychiatric comorbidity among GID patients revealed that the majority of GID patients had no psychiatric comorbidity. GID is a diagnostic entity in its own right, not necessarily associated with severe comorbid psychological findings.
10.1155/2014/463757
Clinical evidence suggests that schizophrenia occurs in patients with GID at rates higher than in the general population and that patients with GID may have schizophrenia-like personality traits. Conversely, patients with schizophrenia may experience alterations in gender identity and gender role perception.
10.1111/j.1600-0447.1993.tb03467.x
Personality disorders, mainly within cluster B, were identified among 5 of 19 transsexuals, and a majority had multiple personality disorders. Among controls, no personality disorder was identified. Personality traits as measured by the SCID screen revealed significantly more subthreshold pathology among transsexuals than controls in 8 of 12 personality categories.
I will note that there were only 19 trans individuals in the above study.
10.1023/A:1024517302481
(One quarter had had problems with substance abuse prior to entering treatment, but less than 10% evidenced problems associated with mental illness, genital mutilation, or suicide attempts. Those completing the MMPI (93 female and 44 male) demonstrated profiles that were notably free of psychopathology (e.g., Axis I or Axis II criteria).
This last study supports what I and other people are saying here: That when allowed to be themselves, their psychological issues largely disappear.
Your second study also asserts "no comorbodity" of GID and major psychiatric issues. Your first study shows only a small effect of increased depression and separation anxiety, issues not usually viewed as "crazy" like "crazy homeless people committing violence" levels of crazy.
The only study you cited that seems to meaningfully support your position is the correlation with increased rates of schizophrenia. Someone taking master's level classes in psychology once said to me something like "Schizophrenia is known to get worse due to social factors. You put schizophrenics in residential treatment, they get better. You send them home to their crazy-making families, they get worse again."