I feel like you're really working extremely hard here to try and make a differentiation to rationalize your own personal biases, rather than making a genuine argument.
Have you ever thought that you also have personal biases that may be at work here and that you're rationalizing them in certain ways that make you maybe ignore things? I feel like your commentary on LGBTQ+ misses a lot of what is actually going on right now.
"Sexy art" doesn't mean actively erotic art, i.e. pornography or the borderline of it, either - the sexlessness absolutely is entering into fantasy art in the West, and indeed it's been an increasing part of things for a decade, easy, maybe two. You have a lot of people who are beautiful, but they're making a huge effort not to be hot. God forbid anyone be hot. But you trying to isolate this as "erotic art" is representative of the problem. It's a continuum, a spectrum, not an either/or situation.
And the deeply involved thing is 100% irrelevant to this argument re: art, not sure why you're even bringing it up except to try and move on from a debate where your position doesn't make much sense.
No, I think this sort of expansion of the topic is not what was being talked about, but is also actively damaging to your own argument. I'll be honest: I don't feel like there's really much change in the art outside of less outright cheesecake, but if you want to expand it to just "sexlessness" in general... that's absurd. It feels like sexiness, romance, and other such things are way bigger now than they were 10 year ago. There are more games based around that, more adventures trying to do that, more content based around that. Again, Critical Role stands in stark relief to this, where they were actively doing randy naughty word all the time (and continue to do so in their Amazon Prime cartoon) and made romance. If anything, I think we're in the sexiest time of RPGs, unless if your only definition of such things is chainmail bikinis.
Now, I think maybe you'd be right if we're just talking about Wizards or Paizo (but even then I'm not sure I really agree), but that's not the entire industry nor the market. Players interact with games in such a different and more active way than fans of movies, and have a whole lot more influence because its something being played, not just being watched. That they don't delve into that stuff is closer to par for the course compared to what happened to movies over time, so it feels like this whole argument just doesn't work: the mediums are different, the environments are different, and it feels like if you expand out beyond just the art, the idea that RPGs have become sexless just comes off as absurd.
The weird thing, is nobody is asking for books to be crammed to the brim with innuendo, lewd art, or anything of the like. One of the few people I have blocked here cannot seem to help himself from posting that stuff and it IS largely inappropriate.
However that is not what is being asked or looked for, not in the slightest.
What is being stated is "Maybe what you think is a fact, isnt remotely the case, and actually Conan is fine, and so would a female Conan be fine."
Instead we get mental gymnastics, statements of opinion as objective fact, and denial of a shift that is weirdly familiar to a moral panic, over an art direction that is nearly dead amongst multiple other points of discussion, and certainly is dead when one looks at the gorilla in the room that is Wizards. Which is the equivalent of Disney, and turning "Action Hero's into Action Figures." to paraphrase the article linked is exactly what they are doing to RPGs.
Its just such a weird time, when we have all these different forces/views/groups all pulling and pushing with or against the tide, sometimes in conflict, sometimes agreeing, but seemingly unwilling, or unable, to actually step back and see the forest for the trees and they call it progress.
Going to be wild when the wheel turns.
I think @Sepulchrave II 's link to subject/object was pretty good at hitting why people have problems with certain things, particularly more revealing art as well as why just making a "female Conan" isn't really a solution.
Also that's just Red Sonja, that literally already exists.