A lot of the beauty question goes into the fact that, let's face it, most of us want characters that look good for some reason or other, even if they don't ever roleplay any sexual interest.

In small to moderate doses this is relatively harmless unless your theme makes it more or less unrealistic for such 'beatiful' appearances. Besides, if 95% of people are beautiful then it'll have to be the RP skills that stand out rather than a character's ability to look uberhot (or however you say it in sarcastic leet).

If most of your characters go for looking hot and there's good quality not always sex RP to be had... I don't see much of a problem. From an standpoint of changing it as a player you can play a less than sexually desirable character

As for the other concerns: If the player is uncomfortable OOCly and says something to the player of the offending character, it needs to stop, and OOC harassment isn't cool either. - If it stays IC and the players are comfortable, I don't worry about it.