Beauty Pageants in general disgust me, so I can't particularly say my opinion of them is worse because of this, but it does seem like a pretty lame qualifier. Frankly, if you can be born with a penis and still manage to be judged as the prettiest princess out of the field, then I'd say more power to you. Really though, I don't see how this is any different than saying a woman dressed as a woman can't compete in a drag show. Contests are allowed to set limitations, and considering these things are superficial in the first place I wouldn't really expect any less from them. It's the promoter's right to set the rules, and the contestants are expected to abide by them. I wouldn't expect the WNBA to allow Kobe in if he decided to have a sex change either.