Obviously this won’t work for all sports, but things like football, track, soccer, it would allow for de-gendered team, even allowing athletes with the skills but not the genetically-endowed physical attributes to have a place to play.
Note: I know very little about sports and being on a sports team, so please point out anything that doesn’t make sense.
Notably Judit Polgár, probably the strongest female chess player, never competed for the Women’s World Championship and only rarely played in women-specific events.