yea it is absurd.
i wish our characters could use any appearance collectible, that includes all facial hair.

argonians would look awesome with the hairstyles other races can use, they could use them like wigs

More than that i'm a bit annoyed at how some NPCs display features not available to players. Like the whole "black hair for Altmer" discussion that has been going on since game release.
It may seem like an overdramatic discussion but in reality players have good reasons to complain.
Let's exclude lore reasons, cause as i said there are Altmers in the game with darker hair than what's available to players and the most random ones too not like main characters or stuff, so my second guess would be engine restrictions maybe?
Maybe for the same reason bought adornments/hairstyles/markings etc. can only be equipped from the collectible tab and can't be selected in the character creation menu.

I agree tho that there're quite some female hairstyles that would look really good on males.
I'd dare say that some of them would look less feminine than some of the unisex ones released on the Crown Store.
For example, the Long Pulled-Back Pony is female only and yet would not look out of place on a male, while The Heroic Poet is unisex and does indeed look out of place on a male.