>< bleeeh, yeah like...I can see how the 'funny' interpretation is...well, funny, but I do also think probably a lot of people will go with the second one :\
tangentially related -- once we come out of our hibernation cocoon and/or you guys get a hold of a 360 for yourselves, I really think you might like Last Remnant. Not only is it super fun and entertaining, it is really solid on gender and sexuality. Race is probably the least solid of the three, but I would still say it's on the positive side instead of dipping into the negative area.
Mainly I attribute this to Square's problem of going "Race! Okay, we have multiple races, see? Human and giant cat and giant fish and giant frog! :D :D :D...no?"