I think the point was less to be politically correct and more to personalize the game towards his daughter. He seems to really care about video games and wants

I think the point was less to be politically correct and more to personalize the game towards his daughter. He seems to really care about video games and wants to create the best possible experience for his daughter so that she can share that love. A large part of video games is basically pretending to be the character you're controlling, and a three year old girl who renamed the character after herself is generally going to pretend to be herself.