Yes I agree.  Redesigning the whole room is probably not the best use of his time right now, but some method of interaction without running all the way up/down all the time would be nice.  Perhaps some kind of communicator/kiosk could be crafted to use rather than having to use the elevator every time.

Self-stimulation with a free hand or when doing oral is another idea.

Definitely, and it would be even better if it could be a toggle per character (as in per entity in the world), to give more direct control over it. A freer free cam goes along with that idea.

Yeah Valve has been a bit more lenient recently but the totally backwards notion (to me) that blood, gore, graphic torture, etc. is somehow less offensive than consensual sexual activity still has an iron grip over much of the world.

Even if they did allow it, they would need another level of filters though. Steam does have a "filter products with nudity/sexual content" type setting though, which is a step in the right direction I think.

I don't know about the vaginas because the dripping arousal effect made me not so sure about it, but messing around it seemed like it did build up how much semen was up a character's rear end. Plugging it back up again with a penis would stop the dripping and removing would remove it further. Dildos did not seem to prevent it from leaking out however. I was going to post a suggestion about toys/fingers preventing leakage in addition how it works now, but this is a nice suggestion to go along with that:
Have the fluids build up when plugged up with a toy/penis/finger but an option for overflow after extreme buildup is an interesting idea to go along with it too. It opens the possibility for all kinds of ideas like the semen collection toy/device that never came to be in the first Rack. I'll have to go through the suggestions and see if anything like that has been brought up yet too.

It mangled the links:
The male orgasm: pelvic contractions measured by anal probe.

The female orgasm: Pelvic contractions

I just noticed previous patch notes say more control over the transparency is planned, but it would be nice if it's something you can toggle on the fly rather than only in a menu.

"F" does give more freedom but I'd love to see a totally free camera and (as another suggestion states) a mode with user choice over what goes transparent.

I'll just chime in and say if it does happen, it would be neat for it to work for stimulation on male nipples too. In the first Rack there were a few toys that were gender specific that I could see being fun on either gender.

This reminds me of Final Fantasy XII. Unlock/research available conditions to set. I could see this working like Gambits in that game, if implemented.

I don't know of the feasibility but it could get really interesting if such a system could even control toys based on the status of other characters too.

Examples of the Gambit interface: