I think he completely missed the boat after the halfway point. He did a nice job of selling me reasons to hate the game, when the concept is actually quite nice. You don't choose what you're born as, so if you're going to FORCE diversity upon any game, then diversity-by-ID is exactly the way to do it. He completely missed the boat on WHY people hate enforced diversity though, because it usually takes the form of Tokenism and Pandering With Positive Stereotypes, and it winds up as hamfisted as the racial tones in the Best of the Best movie franchise.
Don't know who this person is but they are horrid at analysis!
Actually, I think I have thought of two ways to get the same effect in single player. Paler tones are unlocks only + for a set time your online and offline avatars are tied. Alternatively, tie the first character created to system ID( I think that's what it's called, the MAC address maybe? Unsure if I'm getting that right) and only by completing a certain portion of the game (or the whole game if multiple paths) do you open the create-a-character. But, you should not even have the OPTION there. You are dropped into the game, select a preset number of skins, and roll. If CaC is not present, a player will always presume that this must be the MC's canon appearance, or that there's a story-related reason. If you have CaC visible but greyed out, people will be annoyed, that they are seeing something they want but can't use yet. One creates a barrier, the other hands it to you as a bonus or reward.
I have never met these mythical 'gamers that can't play things that don't look like me' however. There's a reason for the GIRL acryonym, after all. I believe they make up such stories to colour a certain view or perception that is not true of gamers. I am a short stubby white woman from eastern europe but The Boss in Saint's Row has always been to me essentially Omarosa Manigault, and that is in fact who I based the character on for my serious 100% playthroughs. Most people I know default to 'black' or hispanics forms for The Boss, either based upon the locale, or the stereotypes, especially from white males. A lot of the white male Bosses tend to be played sarcastically, as 'poseurs' and 'pretenders,' or Eminems. As in it's comical because they "wouldn't know that hardship."
The only instance I have seen of such people was ironically enough from pro-SJ videogame forum NeogaF, and their bizarre outrage over obvious Axent nod cosplayer Chloe. (I wonder if Harada was gifted with one of the fancier headsets to design her that way. She is clearly a Catgirl Miku cosplayer wearing Axent headphones)
So I emphatically disagree with his assessment, but agree with Rust creator's. There was far more diversity in the meaning the use during the 16 and 32 bit eras. I can only presume the rise of Gamestop, G4, and "pre-order culture" had something to do with the shift to "everyone must appeal to the main demographic's basest instincts." Anyone who started gaming beforehand however, I've never seen be against diverse characterisation, only enforced diversity, the stripe the opposite ends of the spectrums only are known for. (extreme indie and AAA)