I honestly believe not much has changed. There have been many many "weird" fetish producers out there to fulfill almost any fantasy. Now people can make it up themself more easily and waste less time and money on actually weird sites. Not to mention less scam risk, less money into porn credit card providers, ... Nothing bad about it, except you make it bad but that's the users choice and always was.
I think consuming sex content is akin to most time-wasting we can do on the internet today, and that'd be my main concern.
Why does it matter if people want the chatbot to write sex stories? Who does that harm? It's not immoral or illegal. These same people are fine with going to the island, but ask a chatbot about sex and they'll hang you in the square.
That's the most understandable read of it, they're giant hypocrites. Sam is beholden to the government, and the U.S. posture is to be as involved in the sex life of its citizens as much as it can, feigning prudishness, while politicians cheat on their pregnant wives with prostitutes.
The fact that we are bringing back abstinence programs when the very people against abortion also disapprove of contraception just shows what a sexually stupid country we are.
When we normalize corporations deciding in what ways we are allowed to be "weird", we just accept corporations forcing us into conformity with whatever they happen to consider "normal", and so far these companies don't have a great track record of drawing that line.
Why not just pay $20 to a proper company and make up whatever you want to fap to and proceed with more productive stuff after that?