What if the scenario was put like this:
"Billy is a kid who in HS feels that he should be a woman, and feels that he should be able to participate in Homecoming queen. And if he doesn't win, then that means he was descriminated against."
"Susan is a 5'2 115 pound female who wants to be a man and also who wants to play on the HS vasity football team. This team is the defending state champs. She wants to be a running back. If she doesn't make the cut, and starts, it means that she was descriminated against."
All of these scenarios have "traditions". Traditionally the Homecoming Queen is a woman. A woman period. Not a male who wants to be a woman, or a male who is in transition to be a woman. Let us not damn women for being women. Let us not punish women for having a leg up on men who want to be them
Traditionally men's football is played by men. Yes, there are examples of girls playing men's football. But, what if a 5'2 115 pound girl wanted to be RB for the State's defending champs? And this team already has a first string all the way to 3rd string which are very capable. And of course, being an RB is a physically demanding position. No 5'2 115 pound man would want or be selected for said position.
So, should these young men on the football team be damned because a girl wants that position, and doesn't get it? Should the football team be held responsible if said girl gets the position, due to not wanting to offend her, and when she gets injured?
In Brazil, transvestites have their own Carnival parade. So therefore it doesn't infringe on the "traditional" and or mainstream one...which had to fight to recognized in the first place.
In the US we have the WNBA, where women can play basketball. And there is a female football league and also a Lingerie League, where the women are damn quick and talented as hell.
If the young boy in transition wanted to be homecoming queen, maybe he should have asked for a new position to be made. Therefore he is not infringing on the other positions. Problem solved.