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maybe in Japan it is completely reasonable to make antagonistic fag-type characters. feminine men seem to be considered capable of underhanded and spiteful behavior hidden behind their fake girlishness. This is pretty standard conventional wisdom when I think back on my own life and experiences. Maybe we westerners are the weird ones, we get uncomfortable over a basic character trope.
Gays and crossdressers are certainly not ALWAYS portrayed this way in Japanese media, but its more common than in the west where gays and crossdressers are being treated as sacrosanct because we're in the midst of some weird social pendulum swings. Also individualism. Westerners think that people should be allowed to do whatever they want so bashing queers is considered badtaste since we don't believe in rules and conformity (at least as much as a society can allow) The thing about Melli tho is that hes a badguy because he's spiteful, not because he's queer. I don't think he was designed to offend.