Something I've thought for a long while is that I don't think people who make stuff like jiggle boobs actually find it sexy or hilariously impractical outfits actually find them sexy.
Like, obviously some do, sure, but I don't think it's actually about that. The same way people complaining about a Black mermaid don't actually care about fidelity to the original fairy tale, because they're obviously okay with the thousands of other alterations made throughout other Little Mermaid adaptations or other fairy tales in general.
It feels like it's more about emphasizing the female form as a subject of male gaze. Like, yeah, I know that sounds overly technical to describe the situation, but it's hard for me to believe that the purpose of these costumes and the jiggle physics is actually any kind of eroticism. It seems more about drawing attention to the female form, regardless of circumstance or appropriateness of the situation. Why do these characters dress like this for battle when male characters dress more practically and more for cool aesthetics? I don't think there's a real answer besides that they want you to observe the female characters as sexual objects first, and whatever the story cooks up later as secondary.
It's not sexiness, which might even be an acceptable artistic choice in some cases, it's about power.