I disagree. I believe most people who create fictional universes create something that they themselves would enjoy and the target audience happens to become the people who share their tastes.
But even if we accept your premise, that it is an attempt at titillation (which of course brings us to a different discussion than the one we're having), it's not like titillation is "inferior" as a form of entertainment from fiction, compared to humor, thrill, drama, horror, etc.
Okay, hang on a second - artists or creators themselves can be racist, sexist or just not have enough of creative juices floating in their veins to either steer away from 'easy' way out or to get across idea in a good/evocative/non-crude way.
I know that, since I'm an artist myself (professionally) - but you don't really have to be one to get something that is so simple.
Just creating "something we enjoy" is not enough of a justification or shield from criticism or scrutiny - ESPECIALLY when you let out that creative work "into the wild". And you have to, because art itself doesn't exist without an audience; it's an active dialogue between creators and viewers.
Also, don't forget that in case of games or big movies we're not just talking about works done purely for satisfying creative or artistic needs - those are products. They have target audiences. They need to make money. And sometimes (pah, many times) the spirit of creativity, artist's vision or what we actually want to do is trampled for the sake of making these money or reaching the widest audience, which oftentimes means doing "things that sell".
Honestly, should I even tell you how many times I or my friends had clients/potential clients who wanted us to do something "more sexy" because it won't sell otherwise???? In that case it's not us "doing what we want" and finding our audience, but specifically pandering to the audience's base desires and ideas about things - which includes hurtful stereotypes as well.
The worst thing about that is that it creates a vicious circle - people get convinced that nothing else will sell, while audience that feeds on such trite usually just wants what it's used to consume.
So yeah - you may believe that people just "create stuff they enjoy" and find their audience, but any person who actually does that for a living (or tries to) knows that it's not that simple.
Also - you can't be serious in comparing titillation to staples of narrative, like humor, or sense of drama, or genres like horror - besides, titillation for the sake of titillation, just like bad jokes for the sake of bad jokes (or more $ earned) is never really a good idea.