He hasn't tried transitioning yet, but I don't know if that's because he's too lazy to do anything to change or because he realized he was wrong. Either way, he hasn't admitted anything.

Just food for thought, usually many transgender people will spend anywhere from a few months to several years debating with themselves whether or not their suspected identity is actually accurate for their situation. I can imagine that if they have not done anything thus far, they may simply be sorting through their emotions/background to figure out if there is some other explanation for this desire before taking more serious action. They could also be trying out cross-dressing little by little in their own privacy to again verify if this is something they truly need.

white morbidly obese middle aged gay neckbeard ginger gamer. A living stereotype. He [demonstrates a long list of self-neglect that could be a symptom of depression]

I'm curious to hear your thoughts on the following theory:

Self-neglect like what you describe could be a symptom of depression. If dysphoria is causing this depression, maybe transitioning will slowly help alleviate that depression, and then without that influence will better be able to take better care of themselves and become the very kind of hard-working TIM you previously respected.

Overcoming depression, whatever the source, will require understanding the source of that depression and working on oneself. Gender identity-based dysphoria may just be one possible explanation they are exploring.

I completely agree with your disgust, even having been that exact same living stereotype at one point in time.