1) The OP's logic is undeniable. It is not a feature I like and for sure it is not a feature I would put in a game I would, hypothetically, develop.
buuuuuut
2) It is a feature that influences only and exclusively people who actively want to engage with it. Unlike other features that break immersion whether you want to engage with them or not,
Like the unlimited fast travel, which is basically having a scooter in the middle of a renaissance fair. Even if you choose not to use it, you cannot not-seeing it.
if you create a character that is going to have their sex and identity coinciding, then your game is never going to be influenced by the issue OP highlighted.
So yeah, I don't think is a good feature but since it is going to influence people only if they want it to influence them, I see no particular point on why should I want it to be removed.
