I wouldnt say it bothers me to see an anatomically complete figure.  Its not high on my list either though.   As far as concern with whats included in a base or default version of a figure.. well honestly I'll be more likely to use a figure that I can work with regardless of who is in the room from my 4 year old son to my friends to my co-workers or whatever.  Not that I cant discuss or explain artistic nudity to people.. but I dont want to have to anytime I feel like showing someone what I'm working on.  

I suppose it depends on whether or not you care about amking a mainstream figure or a niche 'poser porn' figure.  If the figure is over all very well done but its primary distinction is its marvelous morphing vagina and anus (really?!) I think it will set a tone where it will end up niched regardless of quality or potential.  I would expect that as much as the figure is focused on its sexuality so too will be the lions share of the products made for it.  I could see it pushing an otherwise versatile and well done figure into becoming -just- the poser porn blow up doll figure.  which would be a shame, though I wouldn't begrudge you that decision any more than I begrudge HW3d their decision to permanently neuter Dawn