One does not preclude the other. I'm 99.9% certain MK confirmed that they did have a sixual relationship.
True. I forget which book it was in, but MK wrote of Pelinal saying to Morihaus that "We are Ada, Mor," going on to remind Morihaus that although the latter had fallen in love, he should remember he was a god involved with a mortal.
Edit: It's in "The Song of Pelinal" --
Never did Pelinal counsel Morihaus in time of war, for the man-bull fought magnificently, and led men well, and never resorted to Madness, but the Whitestrake did warn against the growing love with Perrif. "We are ada, Mor, and change things through love. We must take care lest we beget more monsters on this earth. If you do not desist, she will take to you, and you will transform all Cyrod if you do this." And to this the bull became shy, for he was a bull, and he felt his form too ugly for the Parvania at all times, especially when she disrobed for him. He snorted, though, and shook his nose-hoop into the light of the Secunda moon and said, "She is like this shine on my nose-hoop here: an accident sometimes, but whenever I move my head at night, she is there. And so you know what you ask is impossible."http://www.imperial-library.info/obbooks/songofpelinal.shtml