Mmm. I can see the argument you're making, but I have to say I have a visceral, rather direct reaction anyone that goes around saying games shouldn't do X.
It doesn't seem like a good idea even if said with the best of intentions. (obviously, I'm not including obviously very controversial things, like rape and such, though I would argue even that stuff is enough of a grey area that outright saying this stuff shouldn't be in games seems to be going a step too far.)
I understand the character aspect though.
To me, that's yet another symptom of overly simple AI though. A generic character stops being generic if you can give it some personality as a player.
That's only possible if the game, writing, acting, AI and so on is clever enough to actually give a decent amount of scope for you to actually define a personality of your own.
Of course, that's rarely even remotely the case. What happens instead is a story written in such a way as to make the way the world reacts to the player as bland and generic as possible, so that whatever you do it won't seem out of place with the way NPC's and the like react to you...
But... That seems to undermine any sense of meaning behind being able to choose your own character in a game.
Surely, the point of that is that your behaviour (and maybe even the appearance you chose) DOES have an effect in the world?
Like, in generic fantasy X, maybe there's a lot of prejudice against elves.
If you choose to play as an elf, then surely the world should react to this.
Maybe a 'love interest' has a thing for green hair?
Whatever. But, somehow game devs are afraid of actually attempting to get the world to react to anything at all about you if you have the ability to choose your own character.
How about a conversation wheel where the options aren't good/bad/neutral, but say, Angry/Sad/Sarcastic/flirty etc.
You know. Some actual choices that hinge on something OTHER than morality?
(heh. Just had the mental image of a moodometer. Actually... Why not? Why just have conversation choices. Let you choose emotions for your character too. Sure, interface limitations will make that a little clunky, but wouldn't it be interesting if you walk around looking all sad and moody, and the NPC's actually react to that?
I mean... Surely it's worth a try, right?)
Ah, but asking for much in the way of risky design decisions from AAA devs is probably a bit much.
Maybe an indie will try it or something...