Without taking up any issues having to do with "political correctness", I think a line could be drawn at contact. If it's a contact sport (and there's plenty of contact in basketball), maybe you could make the case for separate teams. Baseball, which is a non-contact sport (despite some close plays at the plate) could be mixed, as could tennis, golf, bowling, swimming, track, etc.
Let's face it, would anyone out there support co-ed ice hockey? Come to think of it, there was this one girl in my high school who, er, never mind.
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Yom HaShoah
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