There is no question that beauty pageants are sexist objectifying nonsense. But it is also true that as a cultural, media and historic event they may play a useful role in ethnic acceptance of the "other."
This can matter for both the acceptance of the "other" by White Protestant America, as well as the self-perception by the of themselves as beautiful, acceptable, and Americans.
Normative beauty in America has of course been based, historically on foundational and majoritarian norms. Which is to say white skin and Christian background.
It definitely mattered in the American Jewish community when Bess Myerson became the first Jewish Miss America. Not only was she Jewish, but she had refused to change her name to something "less Jewish sounding" as had been requested. And yes, she looked pretty Jewish (pun intended).
It certainly mattered to many when Vanessa Williams became the first African-American Miss America. When Ms. Williams was forced to officially give up the title, her runner-up, also an African American woman from New Jersey named Suzette Charles, took over as the 1984 Miss America. There have also been other black Miss Americas, as well as the first Asian Miss America, Angela Baraquio, Miss Hawaii of 2000.
And now an Arab-American who in both name and skin tone clearly "reads" publicly as an "other" has won Miss USA (yes, I know this is Miss USA which is not the same as Miss America. So what.)
We will have to see over time what it "means" if anything. But it is kinda cool.
And she is hot.
And she and her family are likely to take abuse not only from some racist right wing Americans, but alsom from some traditional Arabs and Muslims.
And all of this is also part of a longstanding American narrative.