I agree completely. On the same sex issue, they aren't doing it because in the long run it could cost them millions in lost business by offending entire COUNTRIES of people. So what if you think those countries are 'closed minded'. Its what they believe and they aren't going to change their minds just 'cause you don't like it. So if you like SE at all, why would you pressure them to take such a substantial risk over an issue that wont REALLY make much of a difference for you? The risks FAR outweigh the benefits.
As for objectifying women...I also don't see it. I'm a woman, and I see no problem with breast physics. I'd also like realistic hair and clothing physics while they're at it too. The more realistic the animations, the better, and that includes breasts. They are a part of the female body, why should you be disgusted by them? Its not as though they're going to be going around topless.