I haven't seen this, but then, I don't move in pageant circles.
Frankly, I know a few really, really good cheerleaders that are also amazing pageant girls. I hope, for the other contestants' sake, they don't compete. They'll whoop booty.
I don't think this type of thing would have any impact on all star being recognized as a sport in the least. Everyone that read this thought "T&T," so I don't think this would reflect any more on the sport than the 3 year-old in a cowboy hat and boots and a buckle reflects on rodeo people.
ETA: On the flip-side, if only super-talented athletes competed in these pageants, or won them, maybe it could actually boost how people see the athleticism of these kids. They're certainly not JUST a pretty face, and we all know that.