To link Yoshis statement only to players rather modding online store-only customs than actually purchasing them, hence SQEX losing money falls way you short imo.

I rather think this is the real reason behind cracking down on Mare
"Let's consider another theoretical mod: one that displays your character entirely naked. If this presentation is displayed only on the user's screen, that might fall into the category of personal use and responsibility. (Bear in mind that this is my personal interpretation, and not a discussion of whether that behavior is right or wrong.) However, if the user posts a screenshot of their naked character publicly on social media, FFXIV itself may be subject to legal measures by regulators in certain countries.

Laws that regulate the content of video games grow stricter by the year. These laws are there to protect minors and for a variety of other reasons, but the fact remains that they are tangibly becoming stricter. We have a duty to provide our services in adherence to the laws of all countries where FFXIV is available, and if we are unable to do so, the distribution of our game can be prohibited. This is another example of damage dealt to our services.

Allow me to repeat myself when I say that I do not intend for these examples to be a censure of mod users or creators. I only wish to provide some tangible examples of how using certain mods can damage other players, FFXIV, and the services we provide, regardless of the mod's original intent."

Let's be real here, putting in a few tags in Google easily leads to pictures of ML'd male and female Miqote players being butt naked with explicitly showing their private parts. No age restrictions on these pics nor is any age verification necessary to find that.
Imagine having a 12 yo begging you as the parent to allow them yo play FF14. You google the game and come across these porn pics. Would in all good conscience and common sense you really let your kid play this game?
I definitely wouldn't.

Also in EU the DSA is now cracking down on all kinds of gaming platforms and social media
https://www.gamesmarket.global/busin...a75d98b6ded35c

SQEX definitely can't afford to have their game and money making machine shut down in the EU cause they turn a blind eye to some 200k Mare user's and a bunch of idiots who -for the love of god- can't keep their porn-loving intentions to themselves and rather flood social media with this degenerated bs.

Do what you want in private or with equal friends but don't promote it outside the game and be the root for legal battles between EU regulators and SQEX.
IF the game has to shut down in EU due to that also the Mare lovers across the board will be in for a rough ride. Or would you pay a monthly sub of -let's say $50- to compensate the loss of earnings from EU players?
I don't think so.