Hi Dana,
I agree with you asking after this issue, because as far as I can see the latest news with regard to the Itch-NSWF-Payment Processor triangle was end of July.
I, and I suppose, many others, am anxious to know about how this will be resolved by Itch, if it can be resolved at all, and if Itch will stay a viable place to sell "sensitive" content.
I realize that the NSWF-Payment Processor problem is a difficult issue for storefront providers i.e. market places (I work with several and they all need to face this problem, none of which have solved it satisfactorily so far), but it's indeed more than fair to be kept updated regularly on what efforts have been taken and what the current developments are.
I cannot else than hope that Itch can resolve this. To be honest, if they do, it will be the first open market place (I mean one that doesn't take refuge behind a subscription wall) that will succeed doing so. So to me, this is a real important test case.
Anyway, thank you for speaking out about this and asking Itch to inform us about the state of things. Wish you (and all of us in the NSFW realm) best, Marce.