I see both sides of the argument having merit.
I totally think that there is nothing holding back a woman from contending with the top tier of men. Other sports and competitions make sense to have a women’s division, because the top tier of women would never stand a chance against the top tier of men… But yoyoing isn’t like that. Long before anybody has the skills necessary to contend, they’ll have plenty strong enough of a throw, no matter what their physical shape or gender is… Beyond initial the throw, it’s all skill based, which women should have no issue matching men on.
On the other hand, like Yuki said, a women’s division will ensure that there is a female champion, which is something for younger female throwers to look up to, and might actually entice more females to start throwing. Hopefully this is the prime objective of the division, and eventually there will be enough female throwers where a women’s division is no longer necessary. If the division was created because they think that women aren’t as good as men, then it would be insulting.