While there do seem to be some erotic tensions present in the game, they're just a part of the overall unsettling atmosphere it tries to accomplish. It was clearly made for a mature audience, but that is not to say its sexual nuances are exploitive. If anything, they add a certain dark realism to the game (which is paradoxically quite absurd throughout). No clear distinction is made between reality and fantasy, since the game's world is the world of a child. The main field of tension is where innocence and perversion clash in this child's world. It's like watching a child having fun innocently playing with some bugs, only to notice it's pulling their leggs out and squashing them one by one.
The main problem with the game though, is not its erotic aspect, but its tedious gameplay. This game has one of the worst combat engines I've seen in any horror game. You've only got melee weapons at your disposal, and their hit accuracy is frustratingly low. At the same time, enemy characters practically never miss hitting you. Running away from combat is not an option most of the time, as multiple enemy characters will, for instance, block an entire hallway you have to pass in order to proceed. There will also be times when you get caught in some pile of acid goo and take hits while your character finishes her move animation.
It's hard to say whether the frustrating gameplay is remedied by the story or overall experience of the game. In the end I thought this to be the case, although I came close to throwing in the towel a couple of times. Also, don't expect a clearcut ending; this is one of those games that asks more questions than it answers. I happen to really like that sort of thing, but I know many others don't.