Bioware shifted it to a more female-oriented model. Instead of the anti villain vampire lady finding it impossible not to love you because you're such a hero man(Quest for Glory 4) you get stuff like falling in love with the secret heir to the throne, who just so happens to be a mild mannered british twink(Dragon Age).
The vampire lady was written by a woman, too. I think the problem is the new writers aren't opinionated enough, it's all either designed by committee or at "best" (worst) has some pooner's fetish in it. Disney Wars killing off the emoboi is a good example of women getting btfo'ed, none of the wine aunts in charge had the balls to fight for their fapfiction.
Why do dwarves get no love? It's always fun to have a surly dwarf in the party.
I love dwarfs. In addition to everything else, they live in dungeons, which is the most impressive environment to create on the cheap in a video game.
While I think you nailed the issue of Dwarves not fitting the twink brigade, I also think Dwarves are now considered "problematic" because they are machoistic, racist and manly. The only way to make them palatable is making them either constantly mocked or making them even more Reddit than every other character.
Dwarfs are highly collectivist, industrious, long-lived, and aren't into bestiality, it isn't really conducive to human-style muh patriarchy or fuckboyism. Yeah they have a King but he's not you, you're a miner, or scout, or smith, or brewer, your marriage is arranged; if you mistreat your wife, you will shame your clan and bring a civil war on it or get dispwned. Come to think, the King's life was not much different back when he was a prince, he just had better equipment. Any residual problematicity and lack of wokeness is easily remedied by allowing the player to play as a surly female dwarf.
This would also explain why Baldur's Gate 3 seems way more streamlined and casual compared to the older games.
counterpoint:
Savescum is a core mechanic in Larian games. The Divinity games are full of encounters and events where the only practical way to not get your ass kicked is to savescum & cheese.
This is the opposite of casual (women-friendly). I don't hate this style of game, I loved the shit out of Dark Heart of Uukrul. I hate respecs and build planning, really everything that requires reading the walkthrough. It's not fun to plan the story with the walkthrough in hand, then act it out on the computer. Larian games have been full of it since Divine Divinity, the very first dungeon had a "you have to be this tall" fight.
I do not think these are insurmountable issues, just that they require a lot of work to make a romance that feels proper. Essentially, it would require developing a dating sim to fit inside the rest of the game.
The dating sim
is the problem, they will always suck. It's a very contrived type of game that will not work well in a story that wants to be taken seriously.
Having a set romance in a game (or at least highly limited choices) will 99% of the time be superior to "buffet" romance that is designed from the getgo to have no effect on the plot.
This. Just have the protagonist fall in love with a preset character and write it well. It must be properly set up, it must be epic. IRL, a man's whole life is leading up to the moment he meets the woman he loves (or vice versa). It's hard to do in a game because the game is vastly less dense on content, and even harder to do for several romance options in a single story.