It seems to me that we have to consider each competitor as a private person and secondly as an athlete.
An individual with XX and testes who runs 1:58 for 800 meters should not automatically be considered a world class athlete.
Rather, that person for the purpose of athletics, is a moderately talented high school male but with an unusual genetic condition. Perhaps there will someday be a person with the above characteristics who can run 1:45. I don't know.
How that person chooses to conduct the private side of life might is not our concern.
But, we should not let the private life of a competitor blur the essential athletic characteristics, thus allowing a person who is morphologically and hormonally a male to compete as a woman simply because that person lives privately as a woman.