BocoDragon
or, How I Learned to Stop Worrying and Realize This Assgrab is Delicious
I'm not sure if the late 90s otaku was all that different from the otaku of the 00s and 10s but I'm no scholar on the matter.
Even if Tifa and Cloud being canon at the end of FFVII was true it all went to shit when they made AC, basically confirmed nothing (AFAIK they slept in at least different beds, maybe different rooms) and reversed the status quo to the bullshit we were on before. There are less hints in AC about a relationship than the freaking game, and that was just setting things up. The movie happened after their relationship had had a beginning!
Basically: they had no balls to say their heroine was in a stable relationship with a man (aka boning). And I do chalk this up a bit (or a lot) to Japanese otaku culture and pandering. More the movie than the game.
I wasn't saying the otaku audience was different (though they were). I'm saying that these early video games weren't pandering to that otaku audience. Look at how cryptic all of these plot points were. Though jRPGs took many cues from anime, this was before they were entirely videogame anime. Had they concerns about the chastity of waifus, it would have been borne out in their portrayal in the plot. FFVII was completely unconcerned about that. The portrayal of the girls in the game was too shallow to care about portraying chastity. They barely explained most people's relationships in detail.
I think you are projecting your knowledge of anime/manga/otaku onto a much earlier era of gaming, where those elements were not considered as much, and certainly were not economic factors in how to make Japanese games. Not only was it a very primitive media, but even if it were mature, it was the 90s, and even anime/manga wasn't pandering to an otaku audience in the way that you describe. They were still in the wake of the bubble economy and anime was basically made for everyone. They hadn't doubled down on the otaku audience, because that was a factor after their market shrank.