I wonder if this sexualization is why we have no Dwarven, Halfling or Gnome companions since they would not "normally" be seen as sexual.
Imo yes. They are not sexy enough for the masses according to market research.
Look at what companions we have. Elf, elf, dark elf, half elf, human, human and two exotics, red human and green human. As I said in my other response, in my eyes Larian made the companions primarily to fulfil sexual fantasies, which worked when you see all the simping about them and the constant demands for more kisses, hugs and other scenes. And that included their race.
That elves are seen as overly attractive is even a plot point in some media like Bright or Shadowrun. Larian just applied it to the real world.
