We need bandanas!

I think a 2 - 4 player mode would be cool. Private servers would be best but I'm not opposed to public ones.
Hopefully this is something Fek can do. We'll just have to see what he can come up with since I know he's interested in some kind of multiplayer interaction.

Camera controls similar to Second Life could be handy

I could see applications of this idea manually. Like if you wanted to paw off onto the subject's face or something. I wouldn't want it to lower while pleasuring self unless I wanted it to. Currently, it's in good position to paw yourself and prompty penetrate the subject.

I see huffing as more of an exhalation similar to a sigh but under sexual arousal and stress. The kind of huffing you're talking about sounds like a drug thing like huffing paint thinner X3

But I certainly would love to have sniffing options and burying your muzzle into the subject's fur in the game.
Not sure about the pros and cons you suggested either though.