I think you’re all reading too much into the original comment. To me it’s Lorne hinting at how most of the Oddworld species we’ve seen have nonstandard reproduction based around queens, and the “controversial” part being either that a video game would feature characters so departed from traditional human concepts of romance and sex, or that a video game would have story elements of creatures being enslaved and then forcibly bred to produce more slaves.
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Perhaps it is more social commentary on how our society is, people having sex online, cam sites, usb toys etc. Maybe Glukkons plug in to some Augmented Simulator, if Muds are asexual maybe some are forced into a sex industry of sorts?
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Considering the comment was made way back around the time of Abe’s Exoddus, I doubt Lorne would be thinking too much about modern sex culture.