Aside from the sports consideration, your putting "feel" in quotes like that shows you don't have a true understanding of what it's like for transgender people. You (and others) should watch this to get a little glimpse into what it's like:
Misfit
To put some perspective on this, as well, you should understand that this affects more than 0.5% of the population. In the US, that's almost 2M people. Just because awareness of it isn't of the levels of where it is for other minorities, the time for that to change is coming.
The sports issue will have to be addressed for sure, but let's not blame the students in this situation either.