I agree with her sentiments entirely - including that having an award for the best song/singer/musician is sensible. There is no need to have a male prize and a female one, as far as I can see; but there is definitely a need to have sport segregated by sex rather than 'gender', as that is a very different ball game (no pun intended!).
If the decision had been made on the grounds of 'no need to have two sets of prizes' it would have been better than doing it to placate Sam Smith, though. I like his music, and he does seem to be less whiney since he declared himself non-binary, which I hope means that he is happier than before; but I don't believe that policies should be driven by tiny minorities, or on the basis of 'gender'. If there is a need for two categories, they should be male and female, based on sex, and then there is no doubt about who should enter which one.
I also think that we need to keep an eye on the distribution of the prizes, and be prepared to reverse the decision if necessary, in case the majority get handed to men, as is often the way when men and women 'compete' (I'm thinking grammar school places, management roles and so on).