There are a few games that have client-side filter options for things, world of warships being one example I can think of. If you want a more "authentic" or "immersive" experience, you can turn off the silly, anime and gacha game crossover skins (for example the game has some camo patterns themed off the mobile game azur lane) on your client and just show default ones instead.
There's another game coming out (hopefully anyway) that plans to do the same thing, while also implementing shall we say suggestive attire and I would assume emotes in a similar fashion. The plan is to have a client-side filter for specific skins so you don't see them in-game, with either a default one or one you specify replacing the filtered skins. Everyone gets what they want (or don't). No reason this system couldn't apply to skins and emotes if you want a more "pure" ARKS experience in PSO2, apart from the actual effort in implementing it that is. Could be a couple lines of code, could be thousands. I have no idea, I imagine it's probably not even worth the effort for the developers to implement this late in the game's life (keeping in mind it came out many years ago in Japan and we're rushing through everything solely to catch up in time for the NGS launch).
Should we remove this sort of thing entirely? No. The demand for it is very real, and it sells. Should we remove it from existing games that have it? Again, no. That would quite literally kill any game that tried it overnight. Should games going forward have more client-side options than just "don't play lol"? Absolutely. A client-side skin (and emote) filter would work wonders. People that don't want to see certain things can simply turn them off, while people that do can leave them. You'd still get people crying about how they have to turn it on/off (in much the same vein as we get people crying about having to block people and demanding they be banned for trolling in chat or whatever instead of just you know, blocking the offending individual), but it's a far better option than trying to pander to one group, or none of them. Thing is, if you pander one way, it will never be enough AND you alienate the entire "other side". If you refuse to do anything about it at all, you risk losing the group opposing whatever it was you're leaving alone. A compromise like this will of course have people on both sides leaving, whining and threatening to leave, but not nearly as many as other options that have been attempted in the past. Some just want to show off their character, would feel that they're being denied, and leave/cry/threaten to leave. Others don't like it and refuse to accept the fact that other people do and would do the same. I imagine the vast majority would leave the filters alone or tune what they want and enjoy the game. Although I think that same group is more often than not able to do so with or without the filters or often more-than-merely-suggestive costumes. Like we already see in PSO2.