In light of some of the replies, I am going to posit the following:
1. Beauty is a positive value. Thus - all else being equal - a pretty face is a net gain over an ugly face.
2. To find someone beautiful is not the same thing as lusting for them. Beauty and sexual desirability are two related but nonetheless different attributes. Wanting NPCs to look beautiful, or merely not ugly, is not the same thing as calling for them to look sexy.
3. Consensual sex between adults is good. Therefore. in principle, there is nothing inherently wrong in so-called "sexualization", e.g., making characters appear sexually desirable.
4. Even immersive sims only depict a tiny faction of the fictional world. In the same way the protagonist going to the loo is hardly ever given screen time or them sleeping is not shown in real-time, meaning in the same way repetitive, uninteresting chores or bodily functions are omitted for the sake of interest, games don't have to depict the plain side of human existence. Unless there's a compelling reason, say, characterization, NPCs can still look realistic without having to look overtly ugly.
Ugliness is readily available to you in real-life, 24/7. Just take a walk.
5. The character-assassination attempts - "You just want to jerk off, you perv" - reveal so much about the beliefs of those who default to them.
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