I was picturing something along the lines of a classic turn-based roguelike from the progress screenshots. I do like the real-time approach you went with, it adds quite a bit of extra depth to the combat elements. It was a really good decision to make the attacks wind up rather than build up and hold (at least I think that's what's happening) since it allows the player to kite enemies. This works really well with the auto attack style battles, allowing to focus exclusively on matching the opponent's movement.
The intro cutscene is very well made and I like the dramatic zoom out on the tower when the game is opened. The character dialogue is well written. I also really appreciate the little touches like jiggle animations and audible thumps when walking.
I like removing all gold and would even argue in favor off removing half of your experience, but I think that the armor and weapon loss system will break down after the game is expanded. Maybe something more along the lines of repairing equipment rather than losing it outright?
The proposed achievement system sounds really good and could be a way to incorporate scenes of the townspeople into the game. The multiple special move types idea can be something that's based off of the plug you're wearing. I'm not too hot on the crafting system idea, I think it will take a lot of work to implement and lead to grinding. A better way to add special items into the game might be hide them in those side-areas you're proposing.
The one thing I'd like to see is some sort of representation of the worn plug in the game screen besides the text. Maybe the character turns around at some point or a little butt icon on the arousal meter?
Only found two obvious and fairly harmless bugs:
- Text from the townspeople stays on screen if clicking through menus too quickly.
- If you press the special attack button at the exact time as you cum, both animations will play.
Very nice work!