Personally I think this is a fantastic compromise, where a game can benefit from Steam's reach and scale, while not having to be completely censored, thus making a wholly different and lesser version of the game on Steam which is a pain for both users to buy and devs to maintain. What's more is that titles like HuniePop, that VR girlfriend game from Japanese devs "imagine', and a TON of "Visual Novels", often sell a version of their game on Steam to comply with their restrictions on sexual content, but then allow the use of a user-applied "uncensored" patch - sometimes its even allowed/made/encouraged by the devs. I get that Steam doesn't want (and has never been) a place to sell majorly sexually explicit "porn games", but most of these titles do not quality - at least in the forms which are dispensed on Steam. I don't think they should remove most of these games.
Valve has seemingly moved away from that stance last year, mandating that developers can no longer distribute uncensor patches via the Steam Community or provide instructions on how to install them. However, developers of similar games stated that Valve had a policy of allowing this content so long as the developers distributed it in a separate file. Part of the dating sim elements include graphic scenes depicting nudity. HuniePop is a game that mixes dating sim elements with a match 3 puzzle game. I don't play any of these games so I can't opine on whether the potential bans are valid or not. However, some of these same developers are removing the "bad" content so they can continue to be sold on Steam. Not that this is a bad thing because it is their house, so their rules, but some developers are crying foul because they don't believe their content is pornographic. It seems that Valve is on a crusade to remove games from Steam that are claimed to include pornographic content.