The TERF island thing is mainly because there is a small but very vocal bipartisan TERF media class that has been allowed to dominate the narrative. Whenever they poll people in the UK they are generally less transphobic than say the USA. And as far as treatments go the UK actually has or had "good" gender care in the sense it has free publicly funded gender clinics something that most countries simply do not have, but because they have been subjected to this wave of transphobia, as well as crippling austerity in general, they have absurdly long waiting lines, while being staffed with TERFS and trans-medicalists at various levels.

Compared to say Australia, where transphobia is still thankfully mostly a crank fringe thing (still definitely present), but in most states outside of some public hospitals having paediatric gender clinics for children, all adult transgender care is done by private clinics with doctors who has a special interest in gender care and you basically have to get private insurance for gender affirming surgery or travel. So you get better care but there can be a significant financial barrier.

And even recognizes their gender legally?

Self-ID or whatever it's called has been pushed for on that God forsaken rock but unsurprisingly the TERF lobby has blocked it afaik