I guess a solution for both would be to always have an option but would make it harder to craft certain sort of stories.
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I'm not trans at all, but sometimes I choose to play as a girl just to make real men mad, such as in laser tag (that's a very obscure TheOdd1sOut reference). The fact that I can't do that in Pokémon Red, Green (the Japan exclusive one), Blue, Yellow, Gold or Silver is kinda silly.
Keep your autogynephiliac Pokémon fantasies to yourself.
I usually choose to play as the girl because devs typically make girl characters have much better customization options or just character designs. Not always but has been a trend i noticed a long time ago.
Like choosing outfits or hairstyles.
Theres usually a lot more options to choose from and also your choices usually are more noticeable when you use your character in game.
Im happy that devs seem to like to give lots of beard styles now so that helps me find more options that i like for male characters
I wish all the options were just available to whatever body type you choose instead of being restricted.
Also, forgot to say theres almost never make up choices for male characters. By choosing the female character/bodytype, especially in less fancy games, the way a characters face looks is usually a lot easier to finesse if you dont like the default options you get. And im refering to just basic bone structure/sallowness of face.
A lot of preset male charactures just look lifeless or hungover
I don't see an issue, if 99% of the people are straight, and the goal of your character is to put the players in their shoes, then making them straight (if sexuality is in the game for whatever reason) is the right choice. Btw I'm not straight
God forbid any game doesn't cater exclusively to the greatest size group. Why not have representation in games proportional to the real life people that play them? If all you care about is plurality, then every character should be straight, Han Chinese men. We should cater to the maximum amount of people, right?