Oh my goodness. Not every decision is a life changing event. Not every decision is all or nothing. You need to learn to pick your battles. You need to learn to walk away from insignificant battles.
Yes there are some things to fight for but pixelated armor in a video game is not one of them. Please try not to be over dramatic.
No, it's this thing about - you like sexy armor. But there is a big counter-movement to not have sexy armor in video games at all, and I think it's not because you want sexy armor, but because you are against male armor showing buttcheeks. So in the grand scheme of things there are a lot of people that think like you do, and there will be a divide between you and other gamers. But I feel like this can all be avoided AND you would get to keep sexy female armor in games if you were ok with males having sexy armor too.
The point is that what males see as sexy differs from what women see as sexy. There is also a difference in body shape, women usually have curves while men usually are bulk ( there's a reason drag queens focus so much in smoothing their curves).
As much as I agree and I do with the fact that revealing armors for males should be a thing to take dress designed for the female body and put them on a male body is not exactly the same.
The picture you posted is more for a gender fluid male than for a gender conforming male (and pretty sure the percent of people finding it sexy are few). And believe me had I the chance to make my male toons use magic enhanced armor that grants the same stats as the armors we currently have and let my toon to show his arms or pecs or addomen or legs I wouldn't complain.
Also the problem before was that there were no choices, female armors were exclusively sexualized (that is different from sexy), now we are at the opposite of the spectrum that is instead of giving a spectrum of choices due to a push by a part of players we have graphics that taste like a jump in Victorian age where instead of religion leading morality to censor women's body now is an interpretation of progressive thinking to censor women's body.
All when the solution would be to just increase the spectrum so that any player could choose for their town the kind of dress that make them more comfortable and able to enjoy the game.