Make your point YAV. I'll listen.
Ok, I'll attempt for you, Reddog.
1) "Fatwa" - a ruling on a point of Islamic law given by a recognized authority.
This is 100% the opposite of what is being done here:
a) this is not a religious ruling
b) this is not islamic
c) it doesn't apply to religious or private schools
2) It applies to public schools because public schools fall under Government, and Government is constrained from violating Constitutional rights of their students (extend and constraints based on previous Court rulings). Private schools, like private businesses, have much more leeway. This goes to the very essence of the U.S. Constitution - and such things as freedom of speech, assembly, etc. Government must respect these rights, but private businesses may not be as constrained.
3) Equal protection is being clarified to make sure everyone knows it also applies to the transgendered. It is not being "extended" to include them. The guidance the Obama Admin is giving is in complete agreement with how the Courts have been ruling and have interpreted the law. This means you have it backwards on the application of "equal protection."
(I loved Civics in school :) )
4) Given the guidance is based on case law, it's unlikely to be overturned, much less 'decimated.'