MaximumBunny: As a heterosexual male I don't see the problem with that type of game as long as the gameplay is solid. I would likely be thoroughly amused. :)
You're probably talking about alienating insecure males, males/females with no sense of humor/'traditional values', females who dislike FPS games anyway (which...I've found to be surprisingly few), males/females who dislike cross dressing males, and males/females who are more attracted to scantily clad females.
I don't think there would be as much of a market loss on such a title as you 2 are suggesting and something like that done right could be very successful. It's too early to suggest otherwise based on your personal tastes alone. Especially considering that games with sexy females running around has been done to the point of becoming a norm. :)
Fair enough, I may have gone too far with that assumption. :) I think I was mostly thinking of guys who love their military games and hyper masculine characters. Thinking about it now though, that is certainly a bit narrow minded, as there are plenty of other FPS titles that have been absurd in different ways and received a lot of attention.
As you said though, what matters in the end is gameplay, and I still stand by my original stance that nothing is going to change in regards to the female population with these type of games. While many girls play this stuff (myself included), the rest simply find the subject matter and gameplay unappealing. No matter how you dress the characters, it comes down to the game and whether someone finds it fun or not. I find it silly that websites like RPS try to narrow it down to simply having some hyper-sexualized characters as the reason women tend to avoid these games, when there is a lot more to consider than that alone.