Diversity isn't the problem - never was. We have great entertainment going back decades that had great representation. The problem is DEI as a corporate initiative. It's almost always a cosmetic overlay that draws attention from the fact that while the cast and development teams behind these games are more diverse across (largely superficial) markers like gender, ethnicity and sexual orientation, they are far more homogenous in theme, stylisation, content, design, target audience, scale and platform. Moreover, the 'diversity mix' is almost identical from product to product (including games, TV shows and films) with the same few tropes appearing with predictable uniformity.
And this is part of a wider pandemic of cynicism, where every product is designed to capture the widest possible audience with a product produced entirely from data feedback streams. It's a methodology devised by the corporate middle-class stooges who've overrun the entire industry - people whose respect for the end product is so limited that they think it can be reduced to a perfect template that will print money forever. They're not interested in innovation or pushing the medium forwards, they're not interested in risk, they're interested in turning gaming into an ever more lucrative money-printing racket.