Some context on the above - it was initially a plan from a less suspect source, and actually already had approval from Langley, before getting canceled after becoming too controversial. Also, it wasn't exactly encouraged to swim topless.
But when the same plan then gets picked up again and re-proposed by Yaniv, who is not only guilty of the waxing trolling thing but also has a documented history of being extremely creepy to teenage girls on the internet and discussing plans to harass girls in bathrooms, of course it becomes a different story.
Apart from that, I agree with the points made by fionwe and aero. Left-wing media should indeed also pick up this story to avoid leaving it only to those who want to abuse it for culture war purposes (though the Reason article was fair) plus a handful of gay/trans blogs or news sites.
And indeed, you'd think a slightly more specific phrasing of the services offered might have avoided this. Though really, I'd also blame a legal system that permits such spurious lawsuits or threats of spurious lawsuits, which small business owners are then forced to settle for lack of money to fight them.