The point is they shouldn't have to. All this school is doing is treating a short term symptom rather than the problem.
If kids are giving the LGBT kids grief, then unless their attitudes are corrected, they'll carry on doing that in adult life too.
This school is basically saying 'we'll isolate the victims rather than dealing with the bullies'.

And while you using them to fix everything that is wrong with society, some of those kids are contemplating suicide.

But you can give them help without isolating them.

Or some little transgender kid who would otherwise be the only one in their school might find themselves feeling less isolated if they had a couple of school friends with shared experiences. Perhaps that type of "isolation" will have better educational and social outcomes than the other type, which is the point of a school.

Is there a benefit to the kids from such camaraderie? Nobody cares because being an L, G, B or T apparently comes with an assigned destiny to either be either an ambassador or a martyr. Somebody wants to provide a space for them to just be kids in, is that really so bad?