It certainly doesn't solve the problem of people claiming lack of fairness. If a trans woman beats other female swimmers who all weigh in the same range, those who feel it's unfair will claim that she had more lean muscle for the same weight, as men are generally more capable of packing more lean muscle in and therefore a trans woman must have a similar advantage.
The issue isn't fairness. As barfo alluded to, Shaq isn't "fair" in basketball, just because he's a dude and other dudes are also dudes. He happened to get a biology that makes him far better than just about anyone else and there's nothing anyone can do to even out that advantage. Athletics has never been about fairness. The issue is unfamiliarity. The concept of trans people is a new one for a lot of people to grapple with and it "feels" wrong. That's not distinct to this issue--it "felt" wrong to people to have black people and white people marry; gay boys occupying the same locker room with straight boys "felt" wrong to people. It'll create anger, resentment and controversy for a number of years and then the generations that grew up with this as a rare but far from weird circumstance will stop caring. It doesn't require upending all sorts of social institutions to figure out how to make things feel fair to people who just aren't comfortable with the issue.