The problem with your proposed system,
Ulu
, is that there will be competitors working to beat and cheat the system starting about 10 seconds after it is instituted...as is always the case. I can see a bunch of boxers all pulling their punches, in an effort to be placed into a category which will allow them to mop up the floor with their opponents, as opposed to the next higher category where they really belong but where they will be fighting others who are more their equals.
The people whose natural genetic gifts place them at the top of the heap in their chosen sports, or perhaps in life in general, are always going to be accused by their opponents and detractors of being cheaters in some form. It's human nature, there is no avoiding it. But let's take as an example a high-testosterone woman who has risen to the top of her chosen sport; she has always been aware that she was different to some extent. She has likely always been faster or stronger or whatever than her female cohorts; she has taken advantage of her gifts (and rightfully so!) to attain the pinnacle. Upon doing so, there will inevitably be an emotional reaction, whether it be tears, elation, whatever. Nothing wrong with that, perfectly understandable. I can't honestly say I feel sorry for such a person, and the fact that the spotlight is focused on her should not be a surprise to her or anyone else.
If you don't want to be pointed at and questioned and accused of chicanery...then don't climb to the top of the heap and strive to be labelled as the best in the world, because if you do...that's what will happen.
The key words above were "natural genetic gifts". Today, there are any number of athletes who are resorting to un-natural artificial gifts to give them an edge. Steroids or other performance-enhancing drugs are an old idea; how much longer will it be before we start seeing genetic modifications being done on human beings? We can make fish that glow in the dark; how far is that from making people who run inhumanly fast or who are as strong proportionally as ants? Far-fetched? Yes...but how about making people who process oxygen at impossible levels or produce no lactic acid or whatever? Never say never.
How will the world react to this? How should it react? The days of settling debates about which classification an athlete should fall under by simply asking them to drop their drawers for a quick check are long gone. It's not just guys or girls now; we are definitely on the brink of humans vs X-men.
Back when I was a kid, the Iron Wall still stood strong, and the Soviet Union...the "Evil Empire"...was often accused of strong-arming their Olympic hopefuls using all sorts of extreme measures. Everybody "knew" that competitors' families were held hostage to coerce the best from the athletes themselves. Everybody "knew" that if a Soviet athlete failed to win...there were dire penalties. Certainly, a huge percentage of their athletes were in the military, and everybody "knew" that these people would wind up in a gulag or worse if they didn't bring home a medal.
That kind of common wisdom was likely hugely exaggerated...but I'm sure it had a large kernel of truth at its center. Today...can anybody observe Putin and still doubt that he would do similar or worse things to win?