I'm fully on board with a role playing game that has romance options giving players the ability to engage with an important part of romance(sex). The game is 18+. We're already accepting gratuitous violence, body horror, gore, etc, so why draw the line at nudity and sex? If you don't want to see it, you don't have to engage with it, as you're not being forced to pursue romance options with your companions. Even putting that aside, we already know there's going to be a streaming mode for players to allow viewers to vote on their dialogue choices in the game, meaning unless Twitch has suddenly changed its policies on nudity sexual content, there is likely going to be a menu toggle for nudity and sex scenes. Complaining about Larian investing development into cutscenes that you personally don't want to engage in makes no sense to me. There will likely be tons of cutscenes that I'll never see simply based on choices I make as a player, but I'm not going to complain about them existing simply because I won't engage with them. Larian is making the game they want to make, meaning these assets and scenes were planned on, meaning the inclusion of them isn't detracting from development. Not including them wouldn't add to development elsewhere.
Also, for those saying how awkward it'll look. Have you seen how far 3DCG porn has come in the past couple years? If an indie animator can fully rig high quality Mortal Kombat porn, I'm sure Larian will do just fine.