Here's a difficult question.
How do you know whether someone is fetishising it and who isn't?
I am going to tread very carefully here.
Some friends of my parents have a trans child. When I say child, this person is about 40 but it feels wrong to describe them as either a son or a daughter.
This person has now been "living as a woman" for over half their life. They apparently knew from a young age that they were trans and got the wheels in motion pretty much as soon as they turned 18 to medically and surgically transition. They are currently in a same sex relationship with another trans woman, i.e. they are both male but identify as female. I do not know whether they have a gender recognition certificate or not. They are apparently perfectly pleasant. (I have only met them a handful of times.)
This person's mother is generally very private about the whole thing, but told my mother two things. The first thing was that even 20 years ago you could easily find all the correct answers to the questions you might be asked in counselling on the internet and memorise them to make sure that the therapist diagnosed gender dysphoria. The second thing was that she (the mother) had found her then teenage child trying on her underwear, which she found very disturbing.
To me, the image of a male teenager trying on their female relatives' underwear in secret comes across as sexual. And yet, this is not, to my knowledge, someone who behaves in an overtly sexual way in public. They would, as far as I am aware, be categorised as a nice, harmless trans person. And it seems likely that, other than the psychological damage they have caused to their immediate family members, who have had a difficult journey to acceptance, they are indeed perfectly nice and harmless.
Leaving trans people to one side for a moment, you have no idea what sexual fetishes and fantasies outwardly boring people have. People you think you know well, maybe even your parents, may have colourful sex lives and weird fetishes and fantasies that would blow your mind. I know a seemingly normal man who has a foot fetish and once admitted to me when drunk that he buys women's dirty socks on eBay. I don't know what he does with them. I didn't ask. He's an absolutely lovely man who works in a respectable profession and whose social media is filled with lovely pictures of his wife and young children.
So the point is that you have no way of knowing whether being perceived as a woman is a fetish for a trans person or not. You don't have access to their inner thoughts. Maybe there are trans people for whom it is a fetish and trans people for whom it is purely dysphoria and there is no sexual aspect to it whatsoever. Maybe there is a sexual aspect to it for all of them, and the only difference is that some of them, such as Herbert, choose to flaunt that in public whereas others keep it strictly private. But the idea of using "she/her" pronouns to refer to a trans woman and not knowing whether I am inadvertently participating in something sexual now makes me deeply uncomfortable. So I try to avoid using gendered pronouns as much as possible.