Insightful indeed. It really frames the issue with trans athletes as a competition problem. We search for outliers yet arbitrarily limit the range of players available.
Gender segregation, weight classes, these are antithetical to the underlying aim of competitive sports. Perhaps we should completely do away with them, everyone competes in the same sport, separated only by leagues to reduce one-sided competition.
Segregation by sex is not arbitrary, and segration by weight isn't either (even if the actual values of the implementation are).
But, anyhow, the thing you're looking for is the "open" format that already exists in other competitions like chess, where there's an open category and then any specific categories.
Ironically, in dance competitions (specially swing dancing at least), the open category is done the newbies, and higher levels have other more speciallized categories: advanced, invitational, ...
> We search for outliers yet arbitrarily limit the range of players available.
> Gender segregation, weight classes, these are antithetical to the underlying aim of competitive sports.
That's a naive, reductive view. Competition isn't just about benchmarking and finding the global #1, nor perfect objective ranking. If it was, we would not bother with geographically-based competitions, nor tournament brackets and championships.
Competition is an entertainment product and a major form of community. It sustains itself through competitors and spectators. Seeking objectivity is backwards.