>As for non-binary actors, why not just nominate them in the category that’s best fitting for the character they’re portraying? There hasn’t even been a non-binary actor that I can think of that would ever even be up for an Oscar anyway, I don’t see why we should change nearly a hundred years of an awards category just for rare fringe circumstances.

That's essentially what they do. For a lot of awards non-binary actors can choose which category they want to be considered for.

E.g. Emma D'arcy from HotD was submitted for best actress awards in the Emmys, Golden Globes, etc.