To answer the first half, I won't speak on the generic public, but in regard to venues, the middle stance is a partially-political stance. It is a "I want to obey traditional rp community rules", but 1) "I can personally see how sometimes they can look like children if people purposely design or play them that way" or 2) "I don't way to say -I don't care if you're uncomfortable- to my guests." It is when you are having conversations with guests or staff that are uncomfortable where this comes into play.
person who is obeying rp etiquette -> *points to lore for lalafell being adults*
person who is uncomfortable due to their emotions -> *points to various hints such as the chair that lalafell are children*
You get into a pointing match and defending the lore becomes harder the more things the other side can point to. And the reason you care about that is because you don't want to be seen as a pedophile sympathizer/protector because that'll get you harassed just as much. There are people that RP and bend lore etc./head cannon etc., but being true/hardcore as a RP'er doesn't allow for that, but you don't want to seem unaccepting of the other side's points/emotions because you are a semi-community leader (we're talking 1000-4000+ member discords). Square Enix may have put it in as a joke or to be cute, but there are people that take it serious unfortunately, which is one of the things I hated about being a venue owner and having to handle political outlooks that may conflict with your personal opinion on where /you/ wanted to be in the community.
"And why do the children need that furniture? Because they are 3 feet tall. Why do the Lalafells need it? They're also 3 feet tall." Their height isn't the reason they need the furniture, they need it because they don't have a means to use regular furniture even if they wanted to without excessive strain assuming it was possible. Lalafell have massive hopping potential and have been seen in story flinging full grown midlanders etc. with ease as bodyguards to show their muscle potential, they don't "need" that furniture technically. They haven't needed it for years.