Nintendo needs to make their system easy to port to (x86 architecture) and cheap for a high marketshare. That would bring third parties back.
There's only 2 races: White and 'Political Agenda'
2 Genders: Male and 'Political Agenda'
2 Hairstyles for female characters: Long and 'Political Agenda'
2 Sexualities: Straight and 'Political Agenda'