Great points! Though I do think there's better terminology than "transmission field" for what you guys are describing. A 2013 study on player-avatar identification calls it "merged identity." (Sorry, I just wrote a whole paper about it and how it's an important part of women not being "othered" in games. Excuse the know-it-all tone!)
Also, I think it's important to note that in terms of representation, sexuality in general is an issue for games. You guys can do a whole other episode on the infantile way video games often handle sex. It's more often than not used as entertainment or marketing value, and very rarely used to present a genuine story of how human people experience sexuality. I think this might have something to do with avatars still looking like dead fish in romantic situations [insert reference to horrible love/sex/kiss scene in a game here]. But I have yet to experience a game that depicts sexuality for what it is--a fumbling, exciting, terrifying experience that informs a huge, but often unconscious (even actively repressed) aspect of our identity. This might contribute to why a decent representations of LGBT characters feels so far behind in games. Even heteronormative depictions of sexuality in games lacks subtlety and truth.
P.S. Hi Jamin! Can't wait to intern at Kill Screen!