Sorry for delay! Honestly I think you sort of answered your own question a bit here--SE still makes a ton of money from this. How they shift that money within the company to fund projects might vary, but if they did not have the money it would absolutely effect what they put out and how much various employees get paid. It would remain a detriment for them to not have income from this game.
Don't get me wrong, I do think passion plays a part in the motivation. This is not the same animal as an individual creator trying to put out a story though. It's not even the same as a small company trying to put out a story. When you get a massive company like Square Enix, an internationally successful franchise like Final Fantasy, and the ungodly amounts of money required to complete games like this... you absolutely will not find the required number or expertise of staff willing to go on pure passion without any notion of payoff. People cannot survive on that, and for the amount of labor involved the very idea of doing that work without a reasonable expectation of reward would be hugely exploitative. Further, those creators could absolutely attach themselves to other projects or even projects they own independently if their main motivation is passion, but they were concerned about success. Creators are generally not one-trick ponies or limited to a single passion. It's also often possible to adapt concepts.
With you on this! I'm not positive, but I think we might just have different stances on whether or not it would be fine to unlock the genders later? IMO it's very workable and just offers them an opportunity in the wings they can develop at their own pace. Would also bring new silhouettes/to the table for a fun range in character models, which from a design standpoint could be a lot of fun. And again, there's loads of precedence even on the lore front. If this was some soul-destroying task where there was literally zero joy for devs then yeah I agree they shouldn't do it. However, as a creator that seriously would be beyond bizarre and IMO undermine their skill, professionalism, and passion.
There have been stories and characters I undertook that initially I was unenthusiastic about. However, I'm also confident that can take those and make them into something really exciting and fun in my own way while maintaining concept integrity. SE creators have more experience and accomplishments than I do while being hugely disciplined. It feels like it would be selling them short to expect anything less, much less on a massive scale.
Afaik a big reason against modding is the potential to glitch stuff out? I did hear that if ex. it's a minor glamour mod that doesn't scandalize, cause technical difficulties, or get waved in a GM's face they tend to not prioritize it as highly as other issues. Think I heard it mentioned that they get it's basically people into artistic aspects of the game. I'm mostly neutral on the subject as long as it doesn't impose on others and figure it's not my place to decide. I don't really see it on my server at any rate.
I did hear about Sword Art Online, but my understanding is...
1) It's viewed as extremely unlikely to find traction in Japan, which is frankly way more sex-positive and into social norms than the West
2) This is being treated as weird to the point of being a drop in the ocean.
3) I've heard some recent stories about mangakas behind hugely controversial works being confronted by Westerners about addressing criticism. This was seriously next level edgy storytelling from what I've heard, not something where it's just the hypersensitive uncomfortable. The mangaka literally looked at the questioner and replied "there is no criticism". If there's none in Japan it might as well not exist. I might be able to re-find what the title was, heard about this incident from a friend
4) Seriously look at the racier stuff that is totally normalized in Japan, the West has never been at that level.
5) Look at how Western extremist propaganda works are received in Asia. Look at commentary those types of stories receive and how little money they make. I'm not just talking animation. Look at live action films. The general public in Asia does not have patience for this.
6) I really can't name names, but suffice to say there's a Western-extremism-spawned controversy happening right now where major anime companies are involved. The Japanese business side of things has been indicating more and more that they are pissed about it. And I don't mean pissed because needs more extreme political correctness.
Also, just to be clear--I'm not saying any of this to be weeby, imply there are no issues in Asian media, or poo-poo Western media across the board. There are different issues manifesting prominently in Asian media that I hope they can address, but overall they're doing WAY better. I personally look at Asia-based creators as colleagues and a standard to match or surpass. Have enormous respect for them, and I seriously want people to bring a higher standard here.