Guiding Assumption: That Sega doesn't want short characters wearing lewd swimsuits at all. This would make alternatives like a toggle option not possible. We need communication!
So assuming that the decision makers think that a toggle option and all content options returned are not viable. I propose simply adding either a body paint or Inner wear that acts as a censor, specific implementation would depend on development difficulty, as an alternative to removing the option of short characters altogether. This would be something like a one piece swimsuit (without really covering arms or legs). The exact specifics of this I leave up to discussion in this thread, and as a point of compromise with the decision makers on Sega's side. I'm mostly interested in determining if people think this is at least better than the CURRENT situation.
This idea had already gotten GM attention here
This level of compromise might not be needed, but that depends on sega Disclose WHY the height limit was put in place Less restrictive Toggle option may be viable.