We have to keep in mind that Video Gaming is an entertainment industry, just like Film. As such, developers must focus not just on making entertaining games, but good-looking games too. Sexy games, even. Just like Hollywood cakes its actors' faces with makeup to make them more flawless and appealing, so too will developers "pretty up" its characters for the same effect. Fortunately for developers, videogame characters are complete fabrications. They are as flawless as they are designed, essentially.
So how do you make a flawless character more appealing? Exaggerate, of course! Make the hips wider! Make those legs thicker! Pinch down the waist! Her breasts need to be as big as her head! And why is she wearing so much clothes? For female characters, size is everything. Breasts are usually #1 on the super-size list. Developers have the fortune, as I said before, of working with fabrications. They don't need to hide "imperfections" ; they design their characters without them.