1) Yeah, I am quite busy, so right now the follow-up games/stories are not a priority right away. The first focus is still with TSSR and finishing that up.
2) This game is relatively straight-forward, so it won't have full-on lesbian content. It will have some three-some content though.
3) No, she can be naked on certain routes, or be clothed on others. Like I mentioned, it's still in planning phase and it's a lot more like TSSR in terms of choices. So that game will cover a lot of different stories/kinks.
4) The Duaylin can technically transform themselves into humans, but it's not something they would do. It's mostly manipulating other races through genetic mutation.
5) Like I mentioned, for the 3rd it's impossible to really talk about it without including massive spoilers about where the story will go. Even the title would be saying too much, and it's quite far away in terms of getting around to it. So for now I'll have to keep that one a secret.
6) Yeah, if I did something like that, it would be a short story/game.
7) It's possible, but right now I'm not in a position to really actively jump on new and big projects, because I'm already working in finishing up this one and still working on TSSR. Once TSSR is finished, I'll have a lot more time.
Hope these answers help :)