The LARP elements are likely to be the memorable highlights of the session so having them be smooth, unintrusive and fun is important. Which I think the game is generally designed around, but increasing them with levels and focusing on the Mystic Escort specifically may disrupt the sessions too much. If everyone at the table is feeling horny and energized they can always have their characters rest to get the abilities back for more action. Players will probably have their eye set on specific people who they want to have sexual acts with, so it may be better to write the names of all desired partners on character sheets and roll dice to choose one whenever a LARP element is needed.
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There actually is a bit under "The Participants" sections on page 7 that actually talks about designating other players for activities if you have more than just one player and a Mystic Escort so that actually was the intended thing to do if you are playing with more than a couple. I definitely need to make that more prominent and probably re-word it be more clear. I'm probably over-using the word player which makes things more confusing. I really like the idea about rolling to decide what player to involve though, I think that is a great idea for groups that don't have a preference.