"Seems ridiculous" is a very subjective thing, though, and very dependent on context. It can seem ridiculous that a boxer with male physical advantage since puberty (i.e. 5-ARD) can beat the ** out of a female boxer while the world's media looks on and applauds, but here we are.
Personally I'm sympathetic to the idea that CAIS individuals should be a reasonable exception, i.e. they're still biologically male, but in most social contexts there's no obvious gain to treating them as such. I can see why many people have arrived at a hardline "XX or GTFO" position given the absolute state of activism on the other side, but yes, there's definitely room for nuance. On the other hand, obviously, testicular cancer doesn't care what you were "assigned at birth"; there is a fact of the matter, and it matters.
Appreciate the civil discussion, btw. It's a rarity in this subject.