My son missed his entire senior season of soccer because of Covid. Shit happens. It strains credibility to think anyone is missing out just because a couple trans athletes are allowed to compete. No one is “owed” a championship or a scholarship.
Your attitude could be used to simply eliminate girls sports, entirely. Hey, life's not fair; we have a varsity team, and if you're not good enough that's the breaks.
In fact, we have girls teams (and freshman teams, and jv teams) to give kids who aren't good enough to be on the varsity team an opportunity to take part in a sport. You can say this law is mean-spirited and made for political gain, and you aren't wrong. But that does not mean it suddenly is "fair" for biological males to compete on a girls team.
You could also turn this around and tell a boy, who transitions to a girl, that she can still play, but on the boys team - if she's good enough. If not, well, life is not always fair. You get the gender of your choice, but you don't get to compete on the team of your choice.