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.
Leading AIs refuse to write erotica. This is stuff that about half of US women like. If you consider the softcore porn in most romance novels, the percentage is even higher.
So if you think women are weird, yeah, I guess you have a point.