On the subject of your comments about prostitution, I don't really agree that it wouldn't add anything except 'heh heh they're doing it'.
My intention and justification for this concept is because it's another way to limit the efficiency of your operation and add complexity.
We should start with the following assumption:
Prostitution is not desirable to a society wishing to maximize production, because prostitutes are generally unproductive members of society. (I'm no hypocrite by the way, this isn't a moral judgement, just a fact; from my perspective there is room in society for things which aren't productive but that's not what we're talking about here).
Prostitutes have the same effect that most of the nobles do -- adding complexity with no real benefit to the player, only additional challenges to minimize the impact of the nobles and, in this case, prostitutes.
One of the biggest examples of this is the hammerer noble. Does the hammerer noble contribute anything productive to society?
No, he makes it harder to be productive because now not only do your dwarves get arrested for violating the orders of a noble, but they are critically wounded for doing so as well.
What is the point of the hammerer? To go 'heh heh violence that's funny'? No, the point of the hammerer is to add new challenges for the player. Now he has to either obey the nobles, face the consequences, or else proclaim 'death the nobility viva la dwance'.
In the case of prostitutes, prostitutes are the result of the existence of two distinct classes:
1. Poor individuals whose work does not provide then with a sufficient income to live happily.
2. Unhappy individuals whose work provides more than sufficient income to live happily, and yet somehow they fail to do so.
Actually in a sense, when one looks at it this way, prostitution is not necessarily unproductive because it fills a need for production that isn't filled by money.
Anyhow, my point is, the point of this is to add complexity. There are fair points made why it doesn't make sense for dwarves, and I'm willing to accept that personally.
I just take issue with some of the ridiculous arguments that have been made against its consideration, including yours, which is barely better than the morality arguments.