If we can admit of best male, best female, best disabled, best under the age of 18, etc, we can certainly admit of best trans-male; best trans-female.

That's a possible compromise, but a high maintenance one. It would set a precedent for other groups, and then we'd have to add a new category every time people complain.

I think we should just make the Olympics universal and let anyone compete for the title of absolute best in the world, no qualifiers. Detach the existing categories too, like men-only or women-only. Make all category-gated games a separate deal, like Paralympics. Each group can organize their own variant if they want.