Yes and no, it really wasn't that long ago that Dragon Age had their whole "straight male gamer" controversy because someone was upset at it having diversity.
LGBT representation is a lot better now but that is really only a recent change.
Non sexualized female representation has been lacking for a long time. Even look at Horizon, and you could find people complaining that in Forbidden West they made her face a bit fuller.
It is very easy (just look at this thread) to find people complaining about the idea of "politics" or diversity in gaming and who represents it. Anytime a female character in a sequel gets a less skin tight or revealing outfit it's "politics".
Yes there is a lot of diversity in the gaming audience and who makes the games. A lot of that is more in the open today. But it has not always been like that and for a long time it was largely associated with being straight and male.
Just look at comments like https://news.ycombinator.com/item?id=41367392 and tell me that the gaming community is just fine. I fully acknowledge that those opinions are likely in the minority, but we see it a lot. I mean Xbox Live had a reputation (and still has) of being very homophobic in the Halo 2 and 3 days.