I'm not sure why do you feel like I'm calling you out on anything here. I've just used your excellent point to give my own example why the gender option was something more than looking (or not) at boobs and bums...
It's a classic RPG system example. Based off of RL traditions and Tolkien's universe. Example: Nords have a 100% frost resistance, Argonians 100% poison resistance.
Yes, the race traits make a big deal with these games. Attributes, skills and resistances that is. Especially for Morrowind, as it has some of the most hardcore leveling systems out there. If you want to have a fully developed character, you need to pay attention to all the details. The starting race and gender, combined with a birthsign and custom major and minor skill list, makes a huge difference in the early game, as well in the endgame. Oblivion is quite dumbed down in that regard.
Yes, they've become a faceless pile of shit. Just like other media: music, cinema and books. Made to satisfy the majority of consumers, and not to insult anyone if possible. Quantity over quality, screw the common sense and IQ.