Obviously this won’t work for all sports, but things like football, track, soccer, it would allow for de-gendered team, even allowing athletes with the skills but not the genetically-endowed physical attributes to have a place to play.
Note: I know very little about sports and being on a sports team, so please point out anything that doesn’t make sense.
I feel like it’d probably be better to group based on performance. I don’t see why this wouldn’t work for pretty much all 1v1/FFA/small-team sports/games.