I really don't like the sentiment of outright removing fanservice/tiddy games while stuff like Mortal Kombat's "look at the detail on this exploding eye as the victim screams in agony! We're totally fine with this!" opposite end of the spectrum.
There are, however, two things that they should be doing that I think would help to make these kinds of games more acceptable:
1. Make it all-inclusive: go nuts on buff guys and thin speedos. It's not for me, but by all means do an All-Guy version of DoA just for equality's sake.
2. Remove the objectification/molesting shit: It's one thing to have a setting where ladies are frolicking around in bikinis. As fiction goes, they made that decision on their own. It's totally another thing to include a feature where you can grab their chest and have them react to your player interaction, or create a story where they're "forced" to engage in the demeaning acts because someone tricked them to fly to an island or tossed them into a dream world.