This is a complicated issue. There are many facets, and I couldn't mention them all in the introduction - it already had a tl;dr. But part of the reason I created this thread is because I believe the problems need to be broken into components if they are to be dealt with. There is too much lumping everything together as "sexism in games", with the seeming hope being that naming it like that will make it disappear. It won't. It actually prolongs the issue because people end up talking past each other, each wanting to focus on an individual facet that the other doesn't.
Let's start with criticism of the creative and design teams. It's easy to assume that it's white male designers writing for white males; horny men designing big-breasted semi-nude women because that's what appeals to them; insecure men designing muscular assertive male protagonists as their own wish fulfillment. But do we really know how much input a model designer has into their individual design? Are they told to design a "competent warrior woman" or a "sexy fighting chick"? Are the script writers given the freedom to write diverse casts, or are they given lists of:
1 x hero, white male
1 x love interest, sexy female
1 x buddy warrior, black
I feel that a lot of criticism towards design teams is unwarranted, and that the the problem lies in the bankrollers looking at "what sells" without considering the diversity of the content (ie: they only consider the $ numbers) and this being passed on to the design teams who then say "well it's my job". In a way, none of them are in the wrong. The bankrollers are allowed to aim for what sells. The designers should be listening to their bosses. But at the same time all of them are in the wrong, in that they have a responsibility towards the progress and integrity of medium as a whole.
Maybe a temporary solution is to do something like they sometimes do in the film industry. Have the design team say "we will design the project you have requested by the numbers, but give us a little extra budget so we can release a DLC pack that uses the same engine to tell the story we want to tell". It may not always sell, but it may lead to some real progress. Basically allowing developers to make more Blood Dragons, and things like that.