It is a bit of a cliché that only evil characters are allowed to look ugly and good characters have to look good as well. From the top of my head, I cannot think of a game where the good guys were ugly and the bad guys were beautiful. Only Gaston from Beauty and the Beast comes to mind. But I would have to think there are at least some others. But recently quite some ugly women joined the list.
And here is something I don't have any proof of: console and pc gaming is heavily dominated by men for most games. And most men are in my camp: like to look at and play beautiful people, especially liking to look at beautiful women. And there are a few curious things happening from my perspective:
1) The uglification is not that widespread, but it effects women more so than men. As far as I can tell, men are looking more feminine and women, in roles typically reserved for beautiful people, are looking uglier. Even with downgrades like Horizon, Uncharted and Spider Man (with that last one having Peter (who received an upgrade), Miles and Harry looking like models and MJ like, well, ugly).
2) Men complain more about ugly women, women complain more about beautiful women. And not many give a crap about men looking good or not.
3) There is something strangely puritanical about this female/feminist drive to be against men looking at beautiful women. I assume this is rooted in jealousy coupled with the unwillingness to shave some armpits.
4) Criticism from people demanding a wider variety of looks (adding ugly) is taken seriously. But criticism from people who hate that and would want to play beautiful people is not taken seriously. Perhaps because there are many more options for the beauty-camp than for the ugly-camp.
Concorde had different bigger problems, but I must believe that making the women in there more beautiful would have helped at least somewhat.