I MISSED THIS I really wish there was a notif when people answer questions ;__;
Thank you for this great and thoughtful answer!! and YES I would love to see more explorations of horror/eroticism from that perspective. Survival horror games fascinate me this way because there's often a clean split between a canon that treats the monsters/enemies as unambiguously repulsive and hostile (even when sexuality is invoked), an audience that clearly finds many of them erotically compelling and/or sympathetic, and marketing/merchandising that acknowledges that experience. So I've always been really intrigued by why that persists.
I can think of games where the player character is portrayed as being compelled by or inextricably connected to the horrific Other World and its inhabitants and where it's not treated as a corruption Bad End if they fail to reject it. But it's definitely not as common as the number of players going, "Heehee, I hope it doesn't catch me :3c" and basically roleplaying that complexity in the protagonist might suggest would be popular.
And this is more common in film!! Even taking into account how much longer films have had to explore this, I do think the greater ability of the audience to inject their own perspective in games is a fantastic creative tool and a thing you can use to basically make a horny game without ever being accused of horniness. Like, no, no, it's the fans who are horny. Teehee you're all so wacky, jeez we can't even introduce an enemy all prior evidence suggests you'll find hot without you freaks asking if you can kiss it instead of killing it. The marketing finds it #relatable, but play the game itself, and it quickly becomes obvious that there's no textual exploration or even acknowledgement.
SORRY I will go on about this forever ahaha
NARRAT ABSOLUTELY RULES, I don't think I've been so interested in an engine since I started playing with Twine.