If Zelda and Peach are treated as helpless kidnap victims because of their sex what does that make of the president that Duke Nukem had to be "man enough" (risk his life=masculinity) to save? Is the president reduced to a woman or is it because that person was of high importance and his helplessness added a further sense of duty to your mission to be the savior?
Men took their roles as the protector and used it as incentive for other men to made a game of it. This says more to their need to be the savior and risk themselves then their beliefs on the helplessness of women.
Despite this, there is still the issue that women who see their sex represented as basically nothing but a plot device in this situation and this is very much an issue now that the female minority is growing rapidly. Men still make up the vast majority of hardcore consumers (The NPD demographic study says that 'secondary gamers' who don't as much as the primary are mainly women and a study just a few years ago said that 80% of female console gamers preferred the Wii) and that is something for women to work on but there is no excuse for developers to not to include representation that would appeal to the female minority in more projects anymore. That is something well worth fighting for, I'm sure we can all agree.
You raise some interesting points, and I agree with you on a lot of it.
The problem that arises with the Damsel in Distress trope, is not that there ever exists a situation in which a woman needs a man to save her. I think reactionaries often go to far in the quest of "Women can do everything" that they forget that sometimes bad things happen to people that necessitate the help of others, and that is a perfectly valid thing to put in a story. However, in many many early video games, women were basically a plot device, a
MacGuffin. "We need a reason for Bimmy and Jimmy to fight all these dudes... oh, I know, kidnap a girlfriend or something." While the motivation behind using a damsel in distress was likely, as you say, to make the main character's quest noble, and to play on a protective instinct in the player, it still inherently cheapened the female character by not actually making her a character. The fact that this was at a time ubiquitous in game plots definitely posed a problem.
We've certainly come a long way since then in many ways, and even damsel characters end up getting some amount of character development now, if only because story is more important in games now than it was back then. But we still have some unfortunate representation of women in games, and we still have too many instances where women are used as props rather than fully realized characters.
Back to the trope, we have a lot of options here on what to do.
Abandon the trope altogether for both sides?
Most would agree that that would be absurd. Plots involving rescuing characters of both genders should continue to exist. Saving people involves a sense of heroism that should absolutely not be removed from games. Maybe don't always make the person being saved out to be completely helpless all the time (but really, some people are helpless and still need to be saved). Certainly when their role as a Damsel is actually important to the story, their development as a character should be viewed as important as well.
Try to transcend old gender stereotypes deliberately and have the female go off and save the male?
I wouldn't mind more of that occurring. There are plenty of examples of female protagonists saving male characters, though it is rarely the crux of the story, or the goal of the heroine's heroic quest.
Try to have the two sexes work together more equally?
Absolutely. Ultimately, if women are considered to be equal to men (and well, they should be), there should be a lot more of them in virtually every role in games. I'm not advocating quotas, or suggesting that developers be forced to add in token females when they would be out of place (for example, in a historical military setting). But there should definitely be a lot more female characters in important roles, and doing awesome things.
Ultimately, the focus shouldn't be on trying to eliminate "X" trope from gaming (except in the cases of the most absolute heinous garbage). Instead, the focus should be on offering plenty of alternatives to X, so that it is no longer perceived as representative of gaming. And in the cases where X makes sense to use, do it in a way that is not embarrassing or offensive.