I'm all the way for sexy attractive Vashoth females. If Bio made them bulky and ugly like dwarf females I would literally puke. Whats wrong is with having sexy female mage/rouge/warrior with skimpy outfits ?! ITS A FANTASY GAME so saying that this is so unrealistic is pathetic and stupid. This is like asking for peanut butter without peanuts ¬_¬ really ? really?! 
A) Dwarf females are only ugly in YOUR opinion, others are free to disagree.
Nothing wrong with sexy, but fantasy does not equate porn. If you are going to force me to have an avatar wearing next to nothing in climates where it's totally impractical, then I demand all the male characters be eye candy for us ladies, and only wear loincloths.
C) I think you have confused "fantasy genre" for "sexual fantasy." The two are not the same, even if they do sometimes overlap. The former belongs in DA:I. The latter belongs in the privacy of your bedroom.
It's not a matter of modesty but of inclusion. You oversexualize one gender, and in doing so you alienate real people of that gender from wanting to play the game. A few people would be okay with it, but a lot would be turned away. And yes, this applies to if women were modestly dressed while the men wore loincloths, as well.
It also doesn't make sense to wear mere scraps of fabric when you're going to be traveling in all sorts of terrain. In the desert, you want coverage from the sun and the sandstorms. In cooler regions, you'll want cover because it's COLD. So in general, considering the range of environments characters travel through in a given RPG, sexy clothing makes little sense--unless they're only in one locale, like DA2 was, where it's warm enough to get away with it and not die of exposure.