I don't mind sex and nudity in games, they wouldn't do it if there wasn't an audience for it but I think it's time and money that could be better spent elsewhere, especially in a game like this. Like, you can put in the time and effort for sex scenes but can't put swords in scabbards?
It's a little unrealistic for there to be no romance, given the situation, but I think a fade to black would be just fine.
Although, with how bad the cutscene animations are, sex scenes could be hilarious.