How is it not fair to the guys?
I really have trouble seeing this. Whenever I sparred with a woman, it wasn't an issue of "damn, how am I going to deal with hitting a girl today?", "What will people think?", "I hope I don't get kicked out of church for this". Its some weak-minded, sexist bullshit no matter how you cut it.
A person who works hard and trains like everyone else does everything that they need to in order to get to a state championship. Are they are a woman? gay? black? missing a leg or arm? It doesn't mean anything if they've earned the right to be there.
There will probably never be a large movement to have girls wrestling in high schools across the US. They are extremely rare and have been years. Guys in similar situations are put in this position all the time and they don't pull this crap. To be frank, his coach should've pulled him aside and set his entire team straight ahead of time.