I see nothing wrong with objectification and misportrayals for entertainment value. You and I both agree that males are the main videogame market, so where's the surprise? Games are entertainment. Playing a game is just having a good time, so what's wrong with adding titts to the equation? I don't see anyone flipping out at cheerleaders, hostesses at car shows, or the waitresses at Hooters. Guess why? All of those are targeted at male clients. It makes sense. Men are easily aroused and interested in sex, and being sexually aroused lends to being more entertained by something. In the case of SC4, why not have a semi-naked D-cup chick wielding a sword as a main character? It's awesome, ands to the fun of the game if you're a guy, which we already agreed that chances are you are one if you're playing a game. It reinforces the game's point: entertain. Note that I'm assuming animated titts are that arousing. Most guys don't literally get hard while playing SC4.
Games are not reality. Objectifying, stereotyping, slandering, and generalizing all manner of things about our social construct can be taken with a grain of salt when playing a videogame. Their point is to entertain, and while lots of games try to have a sincere and solemn attitude toward things, where you wouldn't usually find complaints about the resident female population looking like a bunch of Playboy bunnies, others parody themselves and many aspects of life. Play a bit of No More Heroes, Redneck Rampage, Monkey Island (any), Worms, or GTA 1/2 to understand what I'm talking about. SC4, being the game I'm using for chief example, isn't really noted for its message or captivating plot. It has nothing to say other than "two people - weapons optional - clothing optional - fight." Are we going to fool ourselves and take this game seriously for the way it portrays women? I believe we ought to really think about what makes us who we are. If a game of little to no intellectual content is enough to shape a person's opinion about women, then I'll advise you not to be too bothered what that person thinks.
Men are usually misportrayed in video games as well. However, because the given audience here is a bunch of straight males, the disparity between fantasy and reality does not serve to sexually arouse, but to lend a certain charisma rarely seen in real life. Think of most male video game protagonists: they are generally more sharp, aggressive, brave, resourceful, and/or muscular than any male player hopes to be. Do you think it bothers me that I was a xenophobic, dumbass redneck when I played Duke Nukem 3D? No. It also doesn't bother me that he would probably have a dick the size of my forearm if the game made a point of showing it.