This is exactly right and what many people fail to understand. In studies, even after 3+ years of hormone therapy, trans-women still have significantly more muscle tissue than CIS women.

Testosterone is literally a PED.

Its why trans women can compete at a decent level, they'll still rarely be at the absolute top of their sport.

They have to have their testosterone and other hormones monitored and held to average levels. That will always put them at a disadvantage at elite levels versus women who don't have the same requirement.

There is still the inherent biological advantage in being born male and going through male puberty and developing a male muscular/skeletal system before transitioning

Which is completely solved by access to puberty blockers before transitioning.

I did see some article claim that hip to knee ratio didn't translate to athletic performance, and it was so ridiculous I even downloaded the linked PDF that said it was a study, and it was just a pamphlet repeating the exact same claim with no further source.

I mean, there's a clear correlation already with women's sports already. Lots of runners peak early and have worse times by graduating highschool. But it's literally physics. Wider hips just means less efficient running.