"I think we need to remember that TW are not excluded from sport. They would always be able to compete in their sex based category"
100% this.
TW are not excluded from competing - but they should compete in their biological sex category.
TM, on the other hand, WOULD be excluded from competing in their sex-based category because they would be effectively "doping" with testosterone, which is a banned substance. So they would have to compete in the male category, OR there would have to be a 3rd Open category to house them and TW who wish to compete against women rather than men.
I'm all in favour of a 3rd Open category, to be honest. No issue with that at all. TM, TW, plus any men who don't make the cut for the men's category, plus any women who want to try out against them. Why not?
What I am not in favour of is people with male biology playing in women's sports/categories, where there male biology is an advantage to them, which is most sports. Obviously there are some where there is no biological advantage, even in the Olympics - shooting, equestrian etc. - and they already ARE mixed. Why not? No reason. But the minute that male body advantage kicks in, then women need their own category.