I think there is a some confusion in the media about the correct use of the terms gender and sex.
Sex is determined by what sized gamete you produce. Eg females produce a large gamete (eggs), males produce small gametes(sperm).
Gender is a social construct and also very helpful explaining the differences in expression of different sex hormones. A female embryo that is subject to a the normal embryological developmental flood of testosterone AND has cells that are receptive to testosterone, will tend to show more of the characteristics of "maleness".
However she is still of the female sex. Womens sports that benefit from the testosterone enhanced strength/power will favour those females that have higher exposure/higher receptivity of testosterone in embryo. Just plain old nature and genetics at work. There is nothing to see here other than making click bait for the Abrahamic religious fundamentalists.
(I will admit that when surgical intervention has occurred things get a little more complicated.)
The basketball analogy is good. Those under 5'9" don't demand a Hobbit Division. I am sure some of them have some sort of obscure beneficial traits and I think normal height society as a whole has accepted them as useful, even if it's only for testing children's playground equipment.
