It doesn't directly affect anything (they hid it in menus raising the point why it was done; you couldn't see mention of gender without vising a random house in an area nobody goes and talking to a NPC purposely)Does it really harm you in any way? It avoids giving some people dysphoria, and you are not negatively impacted in any way. If you aren't affected and it helps some people, why be angry?
I don't like the concept: Humanoid characters traditionally have a gender in games. There's two versions of the game (one being modern; like Retail WoW vs Classic-era), and the Body types were only introduced on the old-school version. Plus it's a RPG and I character-customized what I wanted initially; not expecting concepts to be changed years later, on-top of paying a subscription.
I had questions for a while trying to understand why, but ended up just getting into legit classic games instead