There are plenty of things wrong with the 2017 Women's World Championship:
1. It should be a Women's World Cup, like the "men's"/open event, not a championship. (Naturally, if you think the open World Cup should be the World Championship, then you'll find this a feature instead of a bug.)
2. It absolutely should not be held in Iran for geopolitical reasons.
3. It should not be held in Iran because of the hijab. If it were merely a matter of respectful or professional attire, like men in certain occupations having to wear a suit and tie, that would be one thing, but this goes well beyond that. Note: My point here is that FIDE has no business forcing non-Muslim women (or even Muslim women who disagree with Iran's interpretation of what women must wear) to comply with a country's distinctive religious dictates as a precondition for playing in an event they have qualified for on their merits as chess players.
4. Top players like Hou Yifan and Humpy Koneru aren't playing, and from the U.S. Irina Krush and Nazi Paikidze are sitting it out as well. Whoever's "fault" it is doesn't matter; it still detracts from the intrinsic interest of the event.
But the show goes on, and the finalists are Anna Muzychuk of Ukraine and Zhongyi Tan of China. It has been a great few months for Muzychuk, who recently won the women's world championships in both rapid and blitz, and who has made it to the final, ironically enough, without needing to play a single tiebreaker. Zhongyi, by contrast, has had lots of tiebreaks, twice scraping through an Armageddon game.
The 2017 Women's World Championship is Set For Iran - But Should it Be?
Marc Beishon passed along this article, and I'd also direct you to this one. The FIDE General Assembly has awarded the Women's World Championship, scheduled for February of 2017, to Iran. This is not good.
One obvious objection that has been raised is the matter of the hijab: all women there, including guests who aren't Muslim, are forced to wear it. Another obvious objection is that Iran isn't seen as the friendliest nation in the world, especially to the West. Those objections have been raised, but rather than bother with them I'll offer a third that seems to me more fundamental.
Consider Israel, or perhaps Azerbaijan. Neither of the foregoing objections would apply to them (or so I'll say; if you disagree then just grant it for the moment for the sake of argument), yet they are also unsatisfactory venues for a world championship event. The reason is that in both cases there will be players who can't go: players from some Islamic countries can't play in Israel, while Armenians (e.g. Levon Aronian) can't play in Azerbaijan (or if they do they will feel extremely uncomfortable).
Maybe you stand behind Israel or Azerbaijan 100% in both cases. That's fine. Even so, it isn't fair to the players. They are the ones who qualified, and it is for their sake that the event exists. FIDE can always authorize and even encourage events in Iran, Israel, and Azerbaijan, but these are not suitable places for world championship events. This should be blindingly obvious to FIDE, but FIDE's track record hasn't offered much evidence of 20/20 vision at the helm, at least not in the last 30+ years.