Sexual theme is incredibly hard to approach in pretty much any medium, let alone an ascii simulation game.
While I also found the feverish response from the community and Toady himself amusing, I on one hand understand where it comes from completely.
You can't really implement a theme like that in a game like this without any tactful approach, as in you cannot just imply it here and there, half bury it in other things and hope for the best; no no. You either have to go all out and deliver a clear emotional impact or any sort of message(whatever it might be) or just don't do it at all. When you do an half handed attempt at it, there's a fair chance it can get interpreted in a million different ways and people will find a way to get offended by it.
Also, it's incredibly easy to be juvenile. I mean, the whole story of Obok Meatgod was that: juvenile. Some people act like it was quite literally the most horrible thing in the world they've seen, but unfortunately I find myself in a reality where actual real life incidents and politics are quite far more horrid then, say, a fictional character performing atrocity through sloppily modded means. It's fantastically hard to maintain class and quality with this. It takes far too much effort for quite a little gain.
That said, I really don't think a sexual theme in DF is a good idea, and I am betting good money Toady thinks exactly the same.