I'm personally not too keen on the playersexual approach, though this article does provide some interesting viewpoints from creators of a couple of games written that way. Still, this admission from one of those creators
“What ends up happening is it feels not only like everyone is a little bit pansexual, but also nobody even sees gender, which is not real. That’s not an authentic way to build the world.
...and this from David Gaider
“We didn’t like how [playersexual] made the characters feel like they existed in service of the player; like they were there in the game to be a toy. [...] We felt like that wasn’t why those characters existed. That wasn’t the kind of game we were making. These characters were characters first, and they had their own stories, and the player could interact with them, but it wasn’t always about the player.”
pretty much summarize my feelings on the matter. And yes, I did feel this way about BG3 too.