http://images.uesp.net/d/d8/MW-npc-Travelling-New-Woman.jpg and as far as I found out in Daggerfall as well.
So your opinion contradicts the lore established by former games, therefore your argument is invalid!
Take a look at these:
http://www.uesp.net/wiki/File:MW-npc-Shatalg.jpg
http://www.uesp.net/wiki/File:MW-npc-Hides-His-Foot.jpg
One of them is male and the other female. Can you tell which?. The briast you saw was actually part of the SHIRT texture, not the argonian.
A female human character wearing imperial armor doesnt have briasts either:
http://www.uesp.net/wiki/File:MW_Armor_ImperialSteelF.jpg (original game)
http://www.uesp.net/wiki/File:MW_Armor_ImperialSteelF_LF.jpg (using a mod)
Thats because the game originally didnt have separate female texture of the imperial armor for females. Similarly, there arent separate textures for monsters and some clothes take the shape of a human