Anyway, anyone who is curious about sex-changes and why they're done nowadays can read up on it
here. You might disagree, but the current medical consensus, at least, is that there are situations where it is best for the well-being of the person involved for them to undergo gender reassignment therapy. (It isn't an 'easy' diagnosis to make, though, generally requiring months of observation and having strict criteria.)
But this isn't a forum to discuss sex and gender issues (the liberal crime squad forum is over there!); it's a forum to discuss dwarf fortress -- and how they relate to dwarf fortress.
I wouldn't have anything against gay dwarves, personally. In terms of setting I think dwarves are usually shown as a fairly 'conservative' culture, on one hand, but on the other, the values that are 'conservative' to them may not be the same as ours. They're not even human. Heck, for all we know, maybe two female dwarves or two male dwarves can have offspring. And in any case, in some representations all dwarves of any gender have beards, so, um, how would you tell anyway? That's at least one indicator that they're more lax than traditional human cultures on gender roles -- the dwarves in Dwarf Fortress have few gender roles besides clothing. Women serve in the military freely, even, implying that there's little sexual dimorphism
As far as 'practical' dwarves wanting to have children, remember... Dwarves live longer than humans. In nature, same-sex relationships have been observed in many wild animals, and the general scientific thinking at the moment is that it serves a meaningful population-control purpose... creatures have to develop a strong urge to mate in order to keep the species alive, but they also need a way to easily 'switch it off' in situations where rapid reproduction is not desired. This is one way to do it.
On the other other hand... it's not like it's a terribly pressing or important feature. One reason to leave it out of the game: It just makes things simpler to ignore it. Of course, this hasn't stopped lots of OTHER things from being added.
Maybe there could be more same-sex relationships among the elves. That would serve an important population-control purpose among such a long-lived species, too.
[ March 09, 2008: Message edited by: Aquillion ]