I do think if you’re going to do nudity you have to do it well, and I wouldn’t blame Larian if they dodged the issue by use of strategic placement of cloth, leaves, hair, blood or limbs (dismembered or otherwise) and carefully chosen shots in cutscenes. But while that might be the safest option, if Larian decide to be brave and go for full nudity then all power to them. I’ll just keep my fingers crossed it’s done well enough to add to rather than break immersion.
Part of the problem currently is that the way they've set up, shot and choreographed their sex scenes, they make it painfully visible and clear that the character models are smooth around the bend - they could hide this with clever shooting and posing, but they
don't - so aside form the myriad other major choreography problems that exist in the current scenes ("Why are you giving an invisible blowjob to my vagina-owning PC?", "Where are you even kneeling, there is zero possibility of penetration there!", "I'm a halfling, why are you kissing the altar way over over there?"), they're made all the worse by the shooting showing off with gratuitous clarity that the models are ken-and-barbie dolls where it matters!
