And what if it is a phase? Again, we aren't doing surgery or anything else irreversible on these kids, the largest physical change is a hair cut.
If your kid wants to try being the opposite gender for a little while, let them. If your kid wants to do stuff that doesn't conform to gender norms...if, say, you have a boy who wants to grow his hair, let him. Plenty of guys look great with long hair.
Social transition is reversible and there's nothing wrong with letting kids experiment with gender some. I'm not trans, but I feel as if I have benefited from exploring my gender, including a brief period of socially presenting as male online. I learned a lot about myself and about how men and women are indeed treated differently.