The NYTimes ran an article investigating the status of homosexuals in Iran, as a follow up to Ahmadinejad’s denial of there existence. I found this bit on transsexuals particularly interesting:
But Iran has also taken the unusual step of encouraging sex change operations for those with homosexual tendencies. While religious authorities here view homosexuality a clear sin, transsexuals are considered ill and in need of the help that such an operation can provide.
…
Reza said he knew of gay men who had changed their sex so that they could be recognized by the government as transsexual and mingle with men more easily.
The policy seems at once both progressive, repressive, and naive. It is progressive in its acceptance of transsexuals–it seems we’re no where near that level in the US. It is repressive in that it encourages extreme surgery for homosexuals who don’t actually have gender identity issues. And the last bit in the block quote clearly indicates the utter silliness of the idea.