Maybe there needs to be just a women's and open category to recognise the strength handicap that cis women have for certain activities and allow anyone to compete in open, but then there's the challenge of prize money, viewers etc etc between the two that also needs to be managed appropriately.
I'm fairly certain that this is already the case, and what's being done here as well. Specifically that there isn't a "men's" category, there's open, and there's women's. In chess specifically it's a strange situation. My understanding is that the existence of "women's chess" isn't due to any inferiority of play (though there's undoubtedly some sexism in its origin) but rather as a way to entice women to play and grow the sport. There's no restrictions on a woman being granted the grandmaster title, but a man can't hold a Women's Grandmaster title.
Not keeping your women specific titles as a trans man at least tracks for that. As to not being able to compete as a trans woman I don't really see the point. I could see an argument for resetting your ELO because there is a lower ELO pool in women's chess (due to population, nothing enforced) and your ELO could be unduly skewed, but idk. That's kinda getting beyond my competitive chess knowledge
Tldr; this is probably dumb and misguided, but maybe not as hostile as the headline first looked to me
An incredibly generic answer is that metadata is just "data about data". In the given example, the photo was the data, so time taken, location, phone model, etc is all data about the picture, i.e. metadata. The same can be true of any kind of data. If you're used to windows file extensions you could even think of those as metadata. ".txt" doesn't change the contents of a file, but it does tell you that it's text.