I think this thread went off the rails once or twice, but to get back to the original message. Yes please, let the ingame characters have sexual, racial, and character trait preferences. And please give the AI, the most beautiful and important ability that can make an AI seem most human is...the right to say no.
It should be a solid thing for a game character to say no. That shouldn't mean that the player can't try their hardest to romance a character. It could be great role play for the player to really want to romance a game character but because of xyz that character is ultimately gonna say no. But that doesn't mean its the end.
I guess what im getting at is that there should be ingame friendzoning lol. Player freedom is important, but so is immersion. Some people (AI) just don't wanna take relationships that way haha.