I'd like to at least see single-use changing rooms or bathrooms near the locker room for transgender athletes or students alike.
I don't know about forcing segregation, but at least providing the trans folks a place to do their business in private is a good idea in general. It protects the trans person from harassment, and the others from offense.
Other than this? I don't know a perfect solution. Trans folks deserve equality, but cis women deserve to feel safe. It would be nice if there wasn't an inherent fear of phalluses as being potentially dangerous, but there's so many women and females in general that have been traumatized or raised around risk that it's impossible to expect all of them to feel safe and comfortable around phalluses in such an exposed area.
As for trans women performing in women's sports in general, it's a difficult discussion.
It reminds (though it's not exactly the same) me of learning about racial segregation or ethnic superiority in sports during the Civil rights era.
Many people argue that those of West-African decent are naturally better at certain sports. For example, before the 2004 Athens Games, 494 of the top 500 times for the 100m were held by sprinters who were of West-African descent. Most people who have run under 10 seconds are of West-African decent as well.
There's also a common sentiment among East Asians (and towards East Asians) that we are naturally inferior at most sports besides tennis and badminton and the like. I was never sought of for sports because of my race despite my height.
Many people argue that these racial differences are purely societal, but I doubt that average height, flexibility, lung capacity, etc do not come into play.
Even among two women of the same race, you might see major height differences. One girl may be 5'3 while another girl is 5'10. The 5'10 girl will likely be sought out by the high school basketball coach while the 5'3 girl is not.
Then we consider trans women vs cis women.
How do we handle these perceived or real biological advantages in sports? Where do we draw the line between fairness and equality? How much will we limit others based on the physical traits and genetics they were born with?
It will be a long game of tug of war, if I had to guess.