but it certainly should not be based around any form of exclusion whatsoever to people who identify as part of the group

Yes, however I don't think that is incompatible with keeping the categories. Keep the categories and let people pick the one that best fits their identity.

The concept of fairness comes secondary to being inclusive/being nice/etc because seriously, it’s entertainment, who wins and who loses isn’t that important.

True, the reason I want the categories to stay is because of inclusion, unfortunately most popular sports are based around men's bodies, and doing away with the categories completely would be detrimental to inclusion in professional sports.