If we're going to look at it from that perspective, then we might as well throw a fit about her hair no longer being red, especially since - as someone said, I'm not paying close enough attention to who - said she's apparently sporting some Barbie look with the blond hair (which, ironically, is another generalization, prone to saying blonds can't kick some ass).
All I'm saying is that the context of things, she's going to get compared to other characters, especially fighting characters, and at that point the whole comparison seems to break down.
Taki is much the same way in Soul Calibur - she's skin tight and her breasts goggle around. But compared to DOA it's completely negligable.
If we're going to sit here and say she looks like nothing more than sex appeal, it just seems to fall apart when we get outside of our concentrated bubble.
A better argument might be that Sheik is Zelda, but she looks like a total hard ass and plays like one, and doesn't seem to perv it up.