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I do wonder if that just applying to an American localization:
"While not inherently odd, several other localizations of the title has words pointing out which selection is male and female, from Spanish to German, Italian, Mandarin Chinese, simplified Chinese, Japanese, Korean and others (some languages also used female/male variants of the word islander or villager)"
I do wonder if the progressive changes would also mean more games focusing on people of said genders. Since while it's nice having many options, focusing on each group a game at a time, would make it more commonplace.
Several cartoons on Netflix do have characters of different backgrounds on the main cast. (Like in Kipo, She Ra, Voltron (not great but it's there).
I think RPGs have the best opportunity to add party members of different genders. Maybe making something like Trials of Mana, were you choose the characters you want to learn more about but can't choose everyone.
Or like Octopath traveler have different adventures told from around a single fantasy world.