Let's face it: "Rainbow Magic" works for some kids, but not all of them.
It can be hard to find books for kids that don't fall into annoying "boys' books" and "girls' books" catergories and young adult books with positive, feminist perspectives. This summer, the Young Adult Library Services Association put together a list of 41 books with transgender and genderqueer characters. It was originally meant as a resource list of librarians, but I think it works pretty well for anyone looking for good books.
Here's the list: