So trans women arent doing well vs other women because there are fewer of them competing, but also women arent doing well vs other men because there are fewer of them competing.
If your only issue is the potential that a person has based on their testosterone, then maybe we should have no gender division, but testosterone categories instead.
It seems it would make more sense than preventing both cis women and trans women from competing in a sport just because their hormone levels are too high (a trait we're apparently already directly pre selecting for)