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There's a kernel of truth behind the idea that "lesbians are going extinct" but it's not because so many lesbians are transitioning. It's because TERFs have been somewhat successful in pushing the message that a lesbian is a cis woman who only forms relationships with cis women.
For younger queer women, who often know trans and NB people and whose sexualities and gender identity aren't so rigid, this is off putting. So, they call themselves queer or pansexual instead of lesbian, to avoid signalling transphobia and unwillingness to date trans/NB people.
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