It's a video game. People play it to escape from the boring real life. People want to live their fantasy lives. People want to feel pretty or handsome. Therefore they play pretty/handsome characters. People also like to look at pretty and handsome characters.
I don't see the problem there.
Instead of getting rid of sexualization in video games, I do think that a lot of games would do well to be equalized in terms of sexualization though. For example there are almost no fanservice when it comes to male LoL champs, and I think that a few male LoL champs could definitely be made to look better. A lot of male faces in league tend to be somewhat bland compared to the female ones.
Everybody has their wish fulfillment fantasies of looking at pretty/handsome characters. Straight women and gay men should have some attractive guys to look at too.