>I'm curious about what is happening in other languages. French and Spanish both (if I remember correctly) have masculine and feminine "they" (and the masculine version is used to represent a mixed group) and neither has a concept of his/hers since the posessive pronoun is dependent upon the gender of the object, not the owner.
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>I'm curious about how other languages deal with these kind of gender issues and if they are evolving.

Greg Egan uses "ve" as not just gender-neutral, but gender-free (which, in his novels, means there's not just the standard homo vs hetero distinction, but also a place for sex-free people, plus the various shades in between). "Ve took vis purse... I looked at ver."

As for the "their" you boldened, it's a poor crutch for the lack of the reflexive pronoun in English. See the Latin "se", "suus" etc, which exists likewise in Spanish, Italian, Hungarian (plus probably many other languages) and all the Slavic languages. The nearest that English comes to it is "oneself" and "oneselve's", which doesn't quite replace "se" and "suus".

In the similar vein, the verbs can be intransitive, transitive and reflexive (where some can be both transitive and reflexive, or, ahem, both three). Example from my language - "vidim" - I see, "vidim te" - I see you, "vidim se" - I see myself. So one needs to scratch {replacement for oneselve's here} head to find an elegant way to create a reflexive pronoun and reflexive verbs in English.

As far as the gender is concerned, I think there are few languages more complicated than the Slavic ones. We have he-she-it (it being the neutral gender), then all three of they(m)-they(f)-they(n). Then for smaller numbers, from 2 up to 20, we have the form where you can say "n of {noun}" where the noun is something that's alive and can have a gender. There's a form for an all-male group (petorica - five guys), all-female (pet - five girls) and mixed (petoro - five of the mix).