If the enemies acted like real soldiers in a warzone, the player might even feel some compassion. We all know after all, that games are just training us to be evil killing machines.

It's just because that stuff sells. For some reason young men between 14-35 who have no exciting lives of their own must be feeling all tingly inside when looking at such burly muscled macho men so unlike themselves. Awkward, really.

I think the key is that the character either has to be

A: Relatable
B: Silent
C: Obvious Parody

This is why i have more favor for characters like Samus, Link, and Mario, or from a non-Nintendo universe, Master Chief, because they either remain perfectly silent, or they at least don't muddy up the story with their personality, imposing their personality on the theme of the game. Then there are obvious parody characters like MadWorld's Jack "Ex-Marine, Ex-Navy SEALS, with a chainsaw grafted to his arm," or Duke Nukem. and finally characters who are relatable, which generally comes down to them having some sort of emotional weakness without being overly emotional. Like Famousringo said, Travis Touchdown is a good example. Ike from Fire Emblem is another, just a regular guy who happens to associate with the highest of circles (as far up as associating with the divine). Certainly implausable, but at least it's relatable

Basically what a lot of games do today is to take what was an obvious parody, Duke Nukem, and try to make him into a serious character, and you get what you see in a lot of games (notably Gears)

bitches can be forgiven in RPGs.  especially when you can have people like that guy with the gun on his arm in your party.  like tidus can be forgiven because of auron and vaan can be forgiven because of the brit with his bunny.

cloud would certainly have failed in a shooter.

I have to disagree with you there. Most shooters can be finished in 10 hours. JRPGs are usually five times as long or more. Being stuck with a loser of a lead character for that amount of time is unforgivable. I almost broke my Dawn of the New World disc in half listening to Emil mutter "I'm sorry" for about the five thousandth time.

Antagonist should be badass, and represent the worries or perils of the world.
Protagnoist should be easy to relate to, start out innocent and by the end become more wordly

describes 90% of Fiction, this modern trend of the emotionless one man army main character is having a disturbing effect upon the movie and gaming industry. Thankfully books have remained relatively clear of its presence

Why is there no middle man?

Its either space marine or guy who I mistake for a chick which then I go to counseling because my girlfriend doesn't understand that japan makes guys look like chicks so she walks in on with my pants around my ankles to a guy which I CANT HELP IT GOD DAMMIT!

There is 1 male character who isnt a space marine, big hulking male, or cross-dresser.

His name: Gordon Freeman

Unfortunately even he isn't perfect becuase he has SHS. Something that always bugged the hell out of me in the Shining Force games.

SHS= Silent Hero Syndrome

Pretty much every videogame character, particularly those in genres like FPS, RPG, JRPG, etc, are one dimensional cliches.

But you know, in the end the design is more focused on the game than the writing, etc. I know some developers employ writers but let's be honest, none of them are exactly top of the line literature novelists are they?

Specifically for the FPS badass grunts, I blame Jim Cameron for making the whole thing look so cool in Aliens.

I mean sure, I'd like to see someone take more of a risk - I mean Nathan Drake in Uncharted was engaging enough (if cliched) and at least believable in an Indiana Jones way.

But I think we're a ways away from a developer sinking $20 Million into an FPS with realistic, flawed characters, real world settings, no easy answers and complex narratives that leave you thinking and perhaps troubled with the sense they've lost rather than won.

Good job for books and films is what I say.