Thanks for the feedback! This game is a VN/RPG hybrid, so while there are elements from both, there won't really ever be a "game over" screen. If Killigan happens to run out of health, or completely fail at every possible opportunity, the situation will still be "solved" in some way that makes sense for the context. I'd rather have players progress the story than try a specific fight over and over just to see what happens next. If you want an altered outcome (or better stat gains...), there's still the option to try that fight over and over, but it won't block story progress.
And as for your crossed-out question: no! I usually make it pretty clear when watersports-like scenes are about to happen, with a choice to go through a different path or two instead.