What makes character design sexualised?
I've been thinking about this question a lot recently. I've encountered a few game characters lately who show a lot of skin, but don't imply (to me) that sex was objective of their design. I find this quite encouraging, but of course not everyone sees these particular examples in the same way.
It's possible that being a straight female makes it easier for me to see female nudity (or semi-nudity) as something other than sexual, but I suspect that's being unfair. It's also quite possible I'm just horribly naïve, but even if my examples turn out to be poor the idea remains interesting.
Some people do continue to complain about nudity in painting and sculpture, but there's mainstream acceptance of the artistic merits. I don't see any reason games shouldn't also be capable of meaningful exploration of the human form.