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Yeah steam is fairly capricious about sexual content in games and homophobia always plays a part.  Last I checked they had adopted a fairly everything goes policy, aside from abusing the system, but it can always change or they can always fail to follow their own rules.

Considering that seemingly all Y Press Games content is still on, such as Mister Versatile or Morningdew Farm, or other games such as Seeds of Chaos.. I don't know why this one shouldn't be allowed on there. Then again, you never really know with the system, can only hope for the best. 

They do have some specific triggers such as incest I think.