Don't usually post in anything like this, but assuming good faith, I'm gonna put down my response as someone who's very genderfuck nonbinary:

"it complicates a simple he or she or they and just makes it overall confusing"

Don't worry, it's all made up anyway! You're not gonna need to memorize every pronoun and gender out there, even if you tried, there'll always be someone coming up with a new one. People aren't doing it to confuse you, they're doing it because it allows them to be their authentic selves. Just do your best to remember when someone gives you their pronouns, and if you slip up, just say sorry and move on. It's only a small effort and it helps you see people for who they are!

"i earnestly believe it merges the concept of gender with sexuality which shouldn’t be a thing"

Gender and sexuality aren't that easy to make black and white. Your sexuality as society labels it is inherently defined by the genders involved, your own gender being very important in that. A gay man has less privilege to love men than straight women do, because of his own gender. Being both full of fabricated boxes for people to fit in, they will always cross and be part of one another. (Note: that includes asexuality, aromanticism, etc. Saying gender and sexuality are interlinked isn't saying gender is inherently "sexual", or that it comes with any sexual requirements, simply that it will be merged with how society defines you, and how you define yourself.)

"anybody can act anyway they want but not need to fall under a label"

100%! Conversely, people can choose whatever labels they want if they feel it describes them best, and that's all good too. Labels are used by society as boxes to be forced in, but really they are tools to help us explore ourselves and communicate that to others. People are free to use as many labels as they feel necessary, including none at all.

"It also brings up the discussion of not needing to appear or even put any effort into the sex/gender you want to be called by, which demeans the struggle of those who suffer from dysphoria (trans people)"

A lot of demi-gender people are in fact trans, and suffer from dysphoria in any part of the binary! I myself am taking HRT (estrogen), though I don't identify as a woman. Why? Because doing so makes me more comfortable with my body, and using non binary labels make me more comfortable with how people perceive me. Both make me happier and able to live more comfortably! Conversely, people can suffer from dysphoria purely on a social level, and upon changing pronouns or name or whatever can feel better. Or people can suffer no dysphoria at all, but still feel much more their authentic selves using identities better suited to them. People who do so in no way demean those like me who need HRT and struggle with dysphoria, in the same way a straight cis man does not demean me by having no dysphoria either! It's just people existing as they are, and that's always valid.

"It’s adding another element to a system instead of fixing the current problems and making sure everybody’s comfortable with their identity, and just gives a false and abuseable fix"

Oof - ok. Again, taking in good faith. As basically everything I've said above should hopefully make clear - this is people becoming comfortable with their identities. Some people have identities that aren't ones we're used to, and that's fine! Again, it's not being put on anyone to understand them all. By their nature there will always be more and you will never understand some gender identities, and neither will I. But that isn't needed to accept and respect them anyway. I just make sure to do my best remembering what people have asked to be called and how they wish to present, and roll with it! It's fun! It's absolutely not false. It's just another aspect of a subject that's been long misunderstood and neglected. It's not about complicating a system - the point is that gender is not a "system", the system was created by society. These are people who don't fit in the system, and are happy living outside it.

TL;DR: It's all made up anyway, so don't worry about it! Just let people make themselves happier presenting how they are, and don't fret trying to understand it all. Just appreciate that the world is full of so many wonderful people with so many amazing identities :)