That is your prejudice showing. As has already been pointed out 'they' is already singular.
If you asked where my friend went you would not consider it weird if I answered 'They went to the store'. You also would not think that we were talking about multiple people. If I was talking about multiple people I would probably use a qualifier with 'they' to make it plural. They all went to the store.
If you say so. Had I insisted on using "it," I think you'd have a point. That sounds degrading to me.
But odd to hear, given that I have no problem with the LGBTQ community and consistantly stand with them for their rights in the face of right wing persecution. Choosing to refer to someone
with their name, guess I'm an asshole like that. I wouldn't consider "Sam went to the store" weird either.
I can see where too many theys could make it weird, like say a case with narrator and multiple 3rd parties, but only one of them being solo. My own history of having to switch between American English and the King's English a lot in my student years might factor in a bit idk, but I don't think my musing about a specific term is prejudicial at all. It doesn't hurt anyone nor does it deprive them of any rights. If a group can fight for a term all of their own, "queer" "non-binary" whatever, claim it, that is evolving language and not really any different than what I submitted. Making another term for the English lexicon, not really a big deal to me. The more the merrier.
Edit: I had forgotten about the xe/xir examples. There is so much outrage on the social authoritarian side I think it's easy to loose track of all the various affronts that make them go frothy