Your comments about higher level competition bring a good argument to the table. As far as I know, awards and scholarships, etc are given based on placement at meets like this. I have not heard of scholarships and such being offered to 2nd place though I am sure it happens.
Transgender competitors are still quite a new phenomena in sports. I will see if I can find out more about the scholarships and higher level competition for transgender high school competitors. That is a great angle for another article.
RE: Teenage Male Identifies as Girl, Sweeps Girls Track Meets, Proud of Effort