How a character acts and reacts during a sex scene could potentially add some depth to their personality.

ex.: Just think about Garrus being awkward as hell in Mass Effect (it didn't really have a sex scene tho), or Jack being so overwhelmed (and confused) by the emotions that she started crying.

Self-loathing, romanticism, awkwardness, and how deeply they care can all be shown through this.
It can also be used to subvert expectations of sexual stereotypes.

ex.: Imagine a male, massive, muscular, strict, rigid, charismatic dragonborn paladin holyman. Well surprise, he's not only gay, but he's also a bottom. Believe it or not, people would find this spicy.

These are the arguments I found for it. I think people generally know when something is tastefully done. I think what surprised me the most regarding this is: Jaal's gay romance in Mass Effect Andromeda has between 1-2 million views (iirc) on YouTube. Even straights watched it and liked it "if" we can believe the comment section.

I think this whole thing exists because Bioware popularized it. Can Larian do it better tho? I'm not sure if playersexuality helps them or puts them at a disadvantage.