I think this is a huge issue in the sporting world for a lot of like minded people. I feel it creates a core issue with validity since sports are often based on a level of fairness. Since this brings that into question it creates a level of question to the validity of the results for some people. If you can't find the validity to something then why even waste time participating in that sport. That's the real tragedy in my opinion.

As with most things I tend to think the solution is for the creation of new sporting leagues and organizations that follow the alignment of their membership. This becomes even more possible in the future as DAOs can be organized that set rules based on the participants decisions.

If the Olympics want to base their gender selections on identification versus chromosome determination then I think that's fine but it's an amazing opportunity for a new organization to stand in with a strong mission focused on principles that align opposite of the Olympic committee and see which wins out. Likewise if a league wants to stand for principles that limit participation to membership based on chromosome gender then I encourage the creation of a league with opposite principles that would be inclusive of identification. Everyone should have a home to enjoy sport.

The market will decide where most people have interest in the results and create the larger economic league. The amazing part is that I'd imagine the market would determine that both can still survive and each pool of people can still enjoy the sport based on their league's rules without pushing people away from the sport all together. One may be rewarded more handsomely than the other based on the larger leagues economic output but both will still allow everyone to enjoy the sport in their own way.