I couldn't agree more, but the way I see it, either we have a few standardized body types with a thousand different pieces of equipment, or we have many different playable bodies with only a few armour options for each. Adding the extra (manual) work needed to adjust animations and cameras especially during cinematics.
BG3 has four body types that aren’t significantly different from one another, yet they already require manual adjustments for equipment modelling. I hope they find a better alternative so nothing has to be compromised.
Technically, they had more than four, since all short races, Dragonborn and Gith had very different body types from the humanlikes. They did a great job with most of them, but halflings. Dwarves look stocky and dwarvy, Gith and Dragonborn looke great too, the halflings have some proportion problems ( they should look like small humans basically) and gnomes have slightly too big hands, which I find ok though, gives them a bit uniqueness.
And BG3 has tons of clothes and armour and all of the vanilla ones fit all races.