You know, part of me thinks this could work even down to having a customizable MC, or at least having our avatar shown through the Equipment menu. Because apart from being human since our character always seems surprised upon seeing furry and scaley bois, the npcs never explicitly mention or comment on our appearance, all except for our gender and the state of our nudity, but down to how we look? Not really.
So yeah, it could probably work, provided npcs still don't mention how we look.