Just on a personal note, my problem with the ugly bastard stuff is less about their look as it about their nonexistent character. At least the generic anime protag attempted to have a character and personality. Also, just don't insert yourself and problem solved. Again, it is personal and i am not trying to offend anyone, but putting my name in for the main character just feel cringe to me, for any game and not just eroge.
And with that separation of immersion, i do prefer if the dude doing the dicking is at least average and not some swarm monster pretending to be human.
Well, it comes just down to personal preference I guess. I like the ugly bastard stuff, not because I identify myself as an ugly bastard but because I like the contrast, the beauty and the beast contrast you could say. A flower on a field of flowers doesn`t peak anyones interest, a flower on a barren wasteland on the other hand does. I don`t know why, but I like the "beautiful flower defiled by the swarm monster" kind of thing.
I also don`t see a problem with inserting yourself into the game character, it is more fun that way if you ask me. If you don`t wanna be part of the story and not immerse yourself into it, then it is way less interesting.
I can life with both though, doesn`t matter if the character is hot or an ugly swamp monster, as long as he isn`t an idiot and actually has a human personality I`m fine with it. The worst shit are the MCs of bad isekais like "In another world with my smartphone". Those are the characters that really lack any personality, who are just a stupid blank sheet with no brain or common sense where you are like "I already know the shit he is going to do after the first episode". They literally even look the same, are white knights that uphold morality (And often act hypocritical) but find it totally ok if a tsundere constantly treats them like shit because she is a female and the Mc is a simp. When it comes to love they are like premature kids that are oblivious to anything love related and obviously can`t see that every girl falls for them and "accidentally" builds his harem. You already know that he is going to be op, rich, wins every fight, gets his harem, does nothing evil and is just the typical 0815 twat. THAT is a bad character.