In regards to children...
Yeah, it's annoying. But until a company gets the balls to actually do something about it, people will remain overprotective of digital representations of children.
Ironically, BG3 does let you murder Goblin children. For example, Two and Three who are tormenting Halsin in the Goblin Camp are children.
But any other child is no-go for some reason.
As far as sex goes...
It's taken this long to even get this far. With actual nudity being shown instead of always being in underwear and having sex scenes be a matter of fade to black insinuations or awkward clothed grinding on each other.
Eventually, maybe, developers will actually show sex... But there's a lot to get through with "Porn Game" stigmas applied by people and resultant ESRB rating increases (Which does significantly impact sales. The higher the age rating of a game, the fewer overall sales it makes. Hence why most titles try to stick to PG13 or 15 by avoiding nudity and curses because those things are bad and naughty unlike mass violent murder...)
There's also certain countries that are so prudish they'll outright ban games that would show sex in them, further limiting sales (And making people from those countries upset that they can't play the game)
