Microlabel Positivity

Do people think that the more specific labels and variations are the reason for the hate?

One straight cis-male here (so very small sample size). I think there's not the one reason why people are transphobic or bigoted. I've personally witnessed bigotry that was driven by fear, an upbringing based on 'traditional' values (using that term as a swear word here) or other lack of education, peer pressure and probably a few other reasons.
\ Also, some people just are arseholes and proud of it. Short of going back in time and making their daddy show them some affection, there's just no changing them.

I think the seemingly endless amount of labels (though not necessarily their implications) exacerbate the problem in that it takes time for a society to process and accept new things. Just as society (using that term loosely) at large has finally come to terms with concepts such as gay men and self-determined female sexuality, there comes a torrent of alien new concepts and groups that challenge large parts of every outsider's understanding of the world. For the average person not immediately involved with these concepts, that can be a very scary thought. And people react to fear in different ways. Some people learn. Some people just refuse change on principle and will do anything for the world to stay the same as it has 'always' been. Because that's what they're familiar and comfortable with. Raise your hand if you're older than 30 or 40 and have never yearned for 'simpler times'.

(Please note that the following text block by no means reflects my own opinions and preferred choice of words.)

From the point of view of a simple mind, including people of average intelligence but with lots of other things than political correctness to worry about: Imagine you're a regular guy who has just come to terms with the fact that there are three kinds of people - gay, lesbian and normal. (Yes, I know. Remember, simple mind.) Including all the potentially far-reaching implications for your own life, lessons learned and fears overcome - gays aren't dangerous, they're not contagious, they will probably not mindlessly rear-end you any chance they get etc., so peaceful coexistence is possible after all. Lesbians are even kinda hot (probably all secretly eager to let you watch and/or join them), so no complaints there.
\ You've managed to accept all that and maybe even are a bit proud of yourself. Go progressive you!
\ And only a few years later you're bombarded from seemingly every angle with new, alien terms. Suddenly everybody around you seems to be bisexual (okay - not that different from what you already know), trans (how can you not obviously be a man when you've got a dong), non-binary (what does that even mean?), you're expected to use new pronouns now (Jack is a 'they' now?!), how can you be 'fluid' if you're not a beer or used to lubricate a transmission, and WTF are neopronouns???
\ And every other politician and celebrity implies that the smallest perceived transgression of these absolutely incomprehensible and ever-changing rules means you're a bad person.
\ That's fucking scary. And completely unnecessary. And you've got tons of other things to worry about, especially in that economy, so all these snowflakes can just sod right off. And all the regulars at the bar feel the same, so...!

Personally I can somehow relate to the above in that I'm sometimes expected to understand and celebrate every last nuance of a self-appointed snowflake's uniqueness, and potentially also accept the inferiority and/or guilt coming with my white cishet male-ness. Cut that BS. I'm a live-and-let-live kind of person, which means that you being different from me is totally fine and doesn't make you inferior in any way, but it also doesn't make me inferior or means I have to learn in painstaking detail about how you've picked your neopronouns. If we're not going to hook up or talk about our relationships, I don't even need to know anything about your sexuality in the first place.
\ But then again, that trait is neither representative of the queer community nor unique to them. BDSM people for instance can be even worse, they're just not that public. It would also be wrong to judge all minorities in the world for that, but it just goes to show, every group has its share of idiots, and they're the ones who tend to stick out.

TL;DR: In my unprofessional opinion, the problem could be solved over night if everybody could just accept that every group has its share of loud idiots but that they're not representative of the entire group, and the media would maybe stop blowing everything out of proportion.

There are some gatekeeping idiots who think the labels will "make trans people seem like a joke" and that'll somehow cause transphobia 🙄

In the end that isn't true, transphobic people are transphobic regardless, because to them the idea of being transgender isn't valid to begin with. So this bullshit of trying to appease them doesn't make sense.