It is of course your decision to make, but IMO it's not you going out of your way to be nice, when adressing someone as they wish to be gendered. It's more of a case that you're an asshole if you go out of your way to misgender.
Sort of like you don't deserve a cookie for holding up the door behind you, but you deserve a slap if you deliberately let it hit the next guy in the face. It's basic manners.
But yeah, the government should not have anything to do with it.
We're in agreement the government should not be dictating manners.