But now they do have the ability to show off their characters and they seem to be trying to go the distance and then some to do it.
And there is nothing wrong with the way they made Kid, or anybody else from CC or any of the other characters you mentioned. Because the difference between them and some of the PS2 characters is they were never showing any undergarments. Rikku and many of the other characters from the games they are making an obvious effort to show off those parts.
So that is why it seems they are trying to turn those characters into sexual objects.
They could design their characters to be just like Kidd, or somebody else. But they are taking it one step further than that. And they need to take into account who is playing these games before they add in that extra step.