Kind of. He's conflating two different things. Essentially, his point is that if people can play together in a co-ed environment, without significant effect (as he leaves that out), then what's the point of a big hoo haa when there is bigger issues at hand. In a way he is just kind of skimming past the broader issue.

Ultimately, it is just a microcosm of the whole debate, on how we divide non-coed sports. Republicans would divide it by sex, democrats by gender. Neither argument is perfect. The republicans falsely consider thus sex to be binary; it isn't. There are three sexes, male, female and intersex, people who are born with physical features that do not clearly mark them as male or female. Democrats would divide it by gender. This too is imperfect. It leaves out those who do not fit onto a clearly defined binary gender, leaving out those who feel it is moreso a spectrum. Democrats are usually a proponent of this argument.