I took the quote from the Toronto Star article, and didn't realise it wasn't in the Huffpost one. But yes, that is what's angering about many organisation's approaches to trans issues in Canada. It's basically a form of liberal/passive discrimination that is still very harmful and affecting how Canadian society sees trans people. "You're a real woman...but according to the contest you aren't a real woman."
http://www.thestar.com/news/canada/a...m-pageant?bn=1