If Hubbard had not been considered eligible, Charisma Tarrent, the Aussie lifter, would have got a 'World Ranking' place, rather than the Oceania place she has taken. This would have freed up that Oceania place, which as I understand it would have gone to a young Tongan, Nini Manumua.
It would be great if we did not conflate transgender inclusion, which is one difficult issue, with inclusion of athletes with rare intersex conditions (e.g. Caster Semenya) which is also difficult, but an entirely separate issue.
Caster was born, registered and raised as female. She has always, socially if not biologically, been a woman. While I reluctantly believe WA has come as close as they can to the right answer, Caster deserves nothing but sympathy and support.
Hubbard does not have any intersex condition, and was indisputably biologically and socially male from birth, until transition in mid 30's. That transition presumably was necessitated by gender dysphoria, but while IOC have allowed transgender people without full surgery (A much smaller cohort) to compete as women since 2015, we have had three very significant studies since 2019 that pretty much conclusively prove that the biological advantage male puberty creates - about 15% speed, 35% power and strength, and nearly 200% strike force (punching) - is barely reduced even by three years full testosterone suppression.
Hubbard may well be playing by the rules as they are, and seems to be entirely genuine in their gender identity, and this is not a personal attack, but the 2015 rules are wrong - even the trans woman whose evidence was used to justify the 2015 rule change, Joanna Harper, basically admitted this year that the science shows that male pubertal advantage largely remains (there was a <5% drop over 3 years where one might expect and require a 30% drop). in other words, Hubbard retains the exact male advantage that is supposed to be eliminated by having female events in the first place.
I don't know what the answer is. A third category at the Olympic seems unlikely. a specific Trans (and DSD) category at the Paralympics, for example, seems more plausible, and could be done in a gender affirming way without undermining women.
But what has happened here is not sustainable. Far from increasing inclusion and acceptance of trans people, it is causing people who never had an issue with trans people in general to be come angry and resentful. It's actually making things worse. If Hubbard squeezes say Sarah Robles, or Emily Campbell out of a medal, it will become absolutely toxic.
My 2c.