It's more difficult than you give credit I think. There is a risk that by allowing intersex people to compete in women's sport, women will be pushed out of sport in general. It is genuinely a 21st Century question; in the past, the number of people who were open about being intersex, and the discrimination they will have undoubtedly faced, meant that it was rare enough for intersex people to be involved at the highest level that it wasn't a question that was pressing to answer. But openness in regards to intersex people and also the increase in people transitioning between sexes means that the numbers competing at the highest level are only going to increase over the decades. What we don't want to happen is that people born women with entirely female characteristics are entirely pushed out of sport, and the top end of female sports are dominated by people whose biology cannot be accurately described as male or female.
But on the other hand, what other options are available? Intersex people may have biological advantages on women, but men surely also have advantages on intersex people too. To exclude intersex people from female events is effectively to exclude them from sport. One solution is to have a third gender event, for intersex and trans people, but there are obvious problems here too: it means terrible policing of sex, and it's unlikely you would get the numbers of athletes necessary for most of the events, especially team sports.
The idea of forcing people to take hormone suppressors to play sport horrifies me though tbh. It is unbelievably nasty.
This question stumps me. I have absolutely no idea what the right thing to do would be. Every option appears to end with nasty consequences.