Yeah! I get it on to nekkid pics of Card Captor Sakura every night! Seriously though, I heard about this today at work, what a load. What's wrong with having hot chicks showing off your product? Nobody cares when wanna-be supermodels show off cars or sticks of deoderant.
I think that the problem they are trying to address is the perception that E3 is ONLY about the "booth babes". Quite frankly, it disgusts me to see more media (print/web/television) and non-media focus on the "babes" than on the games and hardware.
The reality is, that organizations like IGDA are trying to get rid of the stereotype that this industry is only for men ranging from 12-30yrs old who play nothing but violent videogames and treat women as objects by showcasing them that way in the videogames. What big wigs in the industry want to do is tap into the female audience and make more female friendly games. You can't have that if 90% of the booths there have booth babes holding fake guns and what not. The revenue the industry can gain if the female consumer base gets as large as the current male consumer base, then it will be much, much higher than the current amount the industry makes in a year. So yeh, they just want to shift their image so that they attract more people, more buyers, which equals more money.
E3 is supposed to be for the people in the industry. I'm surounded by games everyday at work, nothing but videogames. I've got videogames all over the place at home too. When I go to E3, i'm surounded by hot chicks (While my GF is cute, there's only one of her)... and vidogames. Honestly E3 would be pretty boring without all of the flashing lights, blaring music, and hot chicks. If i just wanted to see the games, E3 would be a terrable place to do it. I don't care if you turn E3 back into CES, nobody is still going to get anything done there!