Ah so that's what I overheard them talking about in the canteen. I thought "oh that sounds wholesome, letting people be loved for themselves rather than a disfigurement or something, why are they laughing at it?"
Rather than like, well it basically comes off as comedy.
I think in most cases in the real world there's at least some degree of physical attraction involved. On a personal level, you could get someone "not very aesthetically pleasing" in a fursuit and I'll happily be snuggling them and going at their genitals, but the point there is they're cute/sexy. A Worzel Gummidge cosplay not so much.
Which brings us to personal preference / "eye of the beholder" aspects of physical attraction - I know most people would not want to shag an anthropomorphic wolf, but know my fair share of people in that community who would definitely go for the shark person.