@Sparks Yeah. It kind of reminds me a bit of the situation with Tilda Swinton's casting in Dr. Strange. Where the director was like, "We didn't want to have a racist caricature for the Ancient One steeped in orientalism, so we...rewrote the character to be white instead." And man, Tilda Swinton is fucking awesome in every role she plays and there's no denying that, but that reasoning was still super bullshit on the director/movie team's part. (Guys, you don't reduce racist portrayals of things by...just making characters white instead.)
But if you, for instance, make a blanket ban on trans characters because of disrespectful or fetishized portrayals, and then have a player roll in to peek at your game who is actually trans IRL and see that, I cannot imagine that not feeling like shit even if the intentions were meant to be good ones. Because now you're in a situation where it's like, "Listen, we barred this concept that is part of your RL because people weren't respectful, and now you, person for whom this is an aspect of your real life, also can't include it or explore it." And, in the end, it basically sets it up as, "We just don't want to deal with the difficulty of telling people to be respectful with your identity, so we're just going to make a rule against it." That is: "This identity isn't worth our time to protect" swiftly becomes "You are not worth our time to protect."