maybe someone else has already mentioned this (or maybe I'm totally wrong here and I appreciate any feedback y'all have for me), but isn't the image in question offensive because it reduces trans identity to sexual identity, or perhaps even to an overtly-masculine form of trans-identity, which is safer for some cisgendered audiences (the large penis being a substitute image for virility in a very traditional, very toxic way)?
where my brain struggles is here: of course trans people are attractive and beautiful and of course it makes sense that companies will want to objectify that beauty and use it to sell product (i don't think this is right anymore than i think the objectification of women is right, which is not at all, but it makes sense in terms of describing the kind of society we live in). but, at the same time, trans people are not defined by their genitalia and the emphasis of this image seems squarely on the confusion between a "feminine presentation" and a large phallus.
people who think this is oversensitive need to ask themselves: why do you think a large penis is necessary for communicating trans identity and trans beauty? it's a very, very, very one-dimensional portrait, clearly fetishized and clearly meant to appeal to a kind of pornographic view of transgender existence in general.