Well the supposed "mythos" is that namco and tecmo were doing their own thing, but some radio ad came out for tekken that basically blasted DOA for its sexual overtones. That's when itagaki went on a crusade of retribution, or whatever.
Personally I've never even heard this ad, and I doubt 99.9% of the population in either communities have either, so it's hard to say just have provocative it actually was. Itagaki refers to himself as crazy though, so I doubt it took much to piss him off.
But no matter how you look at the feud, when you step back and look at fighting games across the board they are all pretty sexualized, and every company is pretty damn guilty of this.