No, no, no!!! Not this damn crap again!! (T_T)
How it is in Japan is exactly the way it bloody should be. People who obsess over the rights of fictional characters have lost their grip on reality and I for one am not going to get drawn into that argument again because it always devolves to hysterics. Lolis aren't people, they don't suffer abuse - stop listening to feminist lies and dogma!
As for H material in general, we all go through an ambivalent phase: that's part of growing up and experiencing new things. Even I did with Sailor Moon when I was younger, deleting everything and not looking at a single image for around 3 months until I realised just how ridiculous it was. The Japanese don't care what Westerners think because they don't see adult material in quite the same way we do. It's merely okazu to them, masturbatory material... and yes, there's just as much of it for women as well, take it from me, so this is not entirely a male-centric thing either. (>_<)
Christianity has taught us to view everything as a sin, yet Buddhism & Shintoism teaches one to embrace life's pleasures (you do know what shrine maidens like Reimu were originally for, I take it?). The Japanese also utterly embrace the philosophy of keeping public and private life totally separate, something Westerners seem to have no end of trouble doing, especially nowadays. Wear a suit & tie during the day and toil at the office; spend your off hours drinking lots of sake and banging young women in an image club who dress up as anime characters for you. It's a totally different world, that's all I can say.
The way I see it, CVN, you have two choices: follow your own advice and chill out where this material is concerned, ignoring what you don't like and enjoying what you do, or run for office and attempt, no doubt unsuccessfully, to get it all banned. Personally, I'd recommend the former because the latter will deaden your soul, like it does with every prodnose who believes their life is the yardstick by which everyone else should be judged. Even Eiki wouldn't ban porn, you know, even if it was of her. (-_-)
ETA: Oh, and I actually bought that game incidentally; it's by the same circle as Youmu Konpaku & Dungeon Of Lewd Creatures. Whatever you may personally think about the content of those titles, I've actually talked to the creator and he comes across as a decent, hardworking individual who sincerely cares about his productions. No-one is forcing you to buy or play them - you are as free to dislike them as I am to enjoy them. Let's just leave it at that, shall we.