Right, I don't see a problem with "ability" categories for non-contact sports like powerlifting, ping-pong, or chess.
Think how much satisfaction a strong woman would get out of beating me in the "under 1000 total in competition before" class, or how fun it would be for some 300-lb 16-year-old who just took up power lifting a month ago to beat a 180-lb guy who has been training for 10 years! Yes it will be embarrassing for me to lose to a girl, and for the other guy to lose to a newb. But in sport someone's gotta lose.
From a time-efficiency standpoint, the powerlifting meet would run more smoothly if all the people attempting benches in the 200-lb range lifted together...