The problem being your solution makes one side happy and the other side VERY unhappy and provides a target for that unhappiness. People have expressed a LOT of concern with knowing that people were blocking them as in just thinking about the possibility was distressing. My proposition to allow people to filter out glamour/gear normalizers as partymembers would give them the option to avoid a potentially distressing situation for them. There is no reason to enable targeting for harassment like that.
Just because the topic is a hot button doesn't mean it's impossible to work out.. but people will need to discuss rather than react with emotion and outrage. We've actually made a few inches of progress toward an "acceptable" system so far that I have read and participated in:
People don't want their character in another glamour than they've chosen (or in screenshots) : Solution make the toggle use a generic race/gender/job placeholder and possibly a stand in name (initials or randomly generated name)
People don't want others to show them in mismatched outfits or skimpy outfits: Solution use level appropriate AF or carefully cultivated replacement job sets.
People don't like the idea of being replaced at all : solution, add them to a sort of blacklist where the characters will not interact in anyway, both will be invisible to each other and unable to interact or be matched in parties.
In the myriad arguments over whether it's canon or lore or bigoted or intolerant there have been actual solutions that both sides find acceptable proposed.
I unfortunately am starting to get tubby, so I'm gonna need to lay off pizza for a while. It's broccoli and lean steak for me tonight.