I think I might have an entirely different take on the issues with player sexuality among NPCs.

While I generally agree its a good thing, I think that there is ultimately one potential issue with it, and that is the lack of ability to tell queer narratives.

See, when writing stories with LGBT characters you get caught in the is/ought problem pretty easily. Both of these methods have their advantages and disadvantage. In this instance player sexuality represents a form of "ought" stortelling, so we get the disadvantages of chosing ought, which is lack of reprerentation of the queer experience and uniquely queer stories.

Which isnt a bad thing, its just a disadvantage.

(the is/ought problem, if oyu dont know can be summed up as... ought means "what it ought to be" meaning showcasing a more idealized world, and "is" means showing things as they are to tell these stories... neither method is bad, both can tell good stories, they have their advantages and disadantages... nobody is homophobic or ableist for picking one over the other)