STIs such as HPV are transmitted via Skin contact during sexual activity which Pubic Hair help prevent by reducing friction. Pubic Hair also produces sebum which stops bacteria from reproducing and spreading. In a porn game, not every sexual activity is done by injecting and semen is sometimes released onto the vulva which if it is bacteria sebum will stop.
That goes with every hair in your body, they'll will all build up odour; If you actually care so much about hygiene you'd go shower and clean yourself and there wouldn't be odour and oil build ups. Hair including pubic hair is also quite important for temperature regulation. High temperatures improve circulation. Reproductive organs need good blood flow for proper function.
You may be willing to have a few GB of garbage data, most doesn't. It would be appealing to an unprofitable minority.