I think "intersex" is a fair and descriptive tone. The issue with hermaphodite is that it's a specific kind of affliction that doesn't apply to every intersex. That's like calling everyone who's black "African" whether they're from Africa or not.
There's things like mosaiscm (I forget the spelling) but basically they're both and neither. Their sex organ was never defined by birth. So they're not male or female, they're both and neither. Hermaphodites are both, they've got an inny and an outy.
Mosaicism has a lump that kind of goes in and kinda goes out at the same time? I don't really know.
Anyway, in the olden days, those kinds of people were treated as freaks and were forced into a gender. Hermaphodites had something cut off/sewn up, and mosaicis (whatever sp?) were converted into one or the other. This leads to ALL sorts of gender crises.
hell, i remember watching a dateline about a guy who had his penis burnt off due to a power surge during an electrical circumcision. So his family tried to raise him as a girl. He wasn't a guy anymore, they'd snipped the burnt lump off and used estrogen to surpress his testosterone, but he definitely wasn't a girl.
he eventually got an artificial penis made and put on testosterone boosters to get back to "normal" (hence why he's a he) but the point is that with modern understanding of the differences between gender and sex, there should be a place for people who don't fit traditional norms.
In most survey's I've seen, it's Male, Female, or Other which I'm fine with, but "ALLY' type programs are
LGBTI - Lesbian, Gay, Bisexual, Transexual, Intersex - clearly distinguishing all the different kinds of "unusual" alignments.
edit: To bring it back on the OP's rather ignorant opening, nature gave us many different spectrums, but society pressured us to conform to only two extremes for the longest of time.
As I mentioned, the US and many other nations have a third option of "Other" on most surveys. Hell, most companies etc. have that as well. Australia should wake up and join the rest of the world.
Or do you think this progress in civil rights is a step in the wrong direction? Maybe blacks should still be slaves, indians should be hunted for sport, and Australia should just be a dumping ground for criminals, eh?
edit 2:
http://en.wikipedia.org/wiki/Mosaic_(genetics)