You're completely missing my point entirely.
It has nothing to do with being 'politically correct', a poor excuse to begin with. Sensitivity towards people who actually deal with awkward and uncomfortable gender identity issues on a day-to-day basis is important. Like, really important. They get enough shit in real-life; no reason to carry it over into their chosen escape.
I don't have a problem with ERP, either, but as a transwoman, I do not and will never appreciate anyone turning my situation into a vehicle for their fetishes while employing the usage of disrespectful terminology (tranny, shemale, etc.), virtual or not. It's disrespectful and above all, incredibly demeaning.
Now I know for a fact Chiyo would have no intention of doing any of this, but for the sake of discussion, I feel it incredibly important to bring the subject up before feelings are incidentally hurt.
Is that really so bad?
Yeah, no, please read the above. It's not nitpicking in the slightest.