I don't think the children will suffer b/c they get gender-specific names.
Though as Swedish I of course see
Kim as more male than female, since it is traditionally short for
Joakim.
I can imagine that the laws can't stop American parents living in Germany, since they can show that
Taylor,
Madison,
Alexis (a male Greek name),
Morgan,
Riley,
Jordan,
McKenzie,
Kennedy,
Addison,
Paris,
Jamie,
Reese,
Harley,
Casey,
Robin,
Logan,
Ryan,
Dylan,
Ashton,
Sydney,
Christian,
Nikita (a male Russian name) etc, b/c these are (sometimes exclusively) used for girls in USA.