"a period in the 80's when a certain percentage of the population insisted that D&D games, including computer games, were a form of devil worship and a corrupting influence on youth"

Well, the Succubus illustration in the original Monster Manual was pretty provocative. For CRPG's though, it's really all about the challenges. If sex is involved with some sort of challenge or story objective, then go for it. Graphic representation is another thing ... sometimes it is more effective to let the observer's own mind fill in the details.