The state (of New York, in this case) can't even seem to get the simple role of public recorder done right. In the case of female-to-male transgender Evan Rockefeller, a judge in Rochester has refused to change his name from Sarah to Evan, claiming that more evidence is needed. What more important evidence is there than "everyone calls me Evan now, and no one knows me as Sarah"?
It seems to me that by not recording the name change, there is a lot more room for confusion, cost, and potential abuse than if this simple request were honored. What business is it of the state what one's name is, so long as all contracts are honored, no matter which name was used when they were entered into? By recording the name change, interested parties would be able to see that Sarah and Evan are the same person, reducing the risk of fraud. It would also allow Evan to move on with his life.