Many character designs are based on 'other' cultures. This makes perfect sense, since we have a world of cultures to sample from.
Many character designs are sexy. This makes perfect sense, since we, in general, are horny beings.
I have no issue with the original designs, or the remade designs. Whatever. All cultures, races, ethnicities, and religions get stereotyped to some degree because stereotyping is part of how we make sense of the infinite variety of human beings.
You put a suit on someone, or a baseball cap, or a cowboy hat, or camouflage, or whatever and it all has meaning. So does a Native American costume. Give a character a boomerang and an Australian accent, or make a character look like a snake-charming middle eastern shaman, or a white American alpha-frat boy, or a blond cheerleader.... it's all stereotyping, and ultimately it's all okay, because it's how -we- work. Glasses imply smart and nerdy, etc, etc. If it wasn't how we worked, we wouldn't instantly identify and assign meaning to those images in the first place. Can it be offensive? Sure. Most things can. But merely making a stereotype 'sexy' is stretching it, imo. Sanitizing everything is even more offensive in my opinion.