i really loved a few implementations of Divine Arms, but the creator seems to be caught up in one thing or another, so as far as i know there's been no development on that game.
i loved its system of gameplay meets porn, where you could resist a "sex attack" similar to your grapple mechanic but with the typical button masher/point and clicker to prevent damage, or indulge in the "sex attack" voluntarily to take damage but gain damage buffs.
still didn't like the idea that you had to wait for an enemy AI to choose its "sex attack" instead of a regular attack, but i think it might be an interesting combination with your grapple mechanic? choose to resist, or choose to indulge by picking one of two "termination nodes" where if you just reach the cursor to the escape node, you escape as is in the current game, or to the "indulge node" where you can either take no damage or trade damage for a buff?
another idea i just had, mix the clothing/HP with a mechanical tradeoff, maybe the less armor you have, the harder it is to resist a grapple but the faster your stamina recharges, and alternatively/additionally you reload your pistol faster/move faster? i imagine if i was a little lady trapped in an infested station of tentacles, naked and afraid, i'd be pretty panicked and run a hell of a lot faster than when fully armored.
the last idea being that you could intentionally trade armor for buffs so that you can be instantly undressed in one grapple in favor of nude buffs(admittedly paired with debuffs so it's high risk+high reward)