Meh.
Pretty much my opinion on the matter. If things can be handled tastefully, then add it in. If they can't, then leave it out. I would rather have a lack of nudity and gore than tasteless nudity and gore. However, if it's done well, then it would add to it.
We can't assume it will be inherently good or bad to add such things because as always, it is in the implementation.
And Lordharrison, prostitution in TES is like Babylon, it's a religious ceremony. Older games had chapels of Dibella being essentially state-sponsored brothels.
While I understand that this is true, I also feel that even though TES is quite obviously modeled after our own ancient history, it is it's own setting rather than a simulation of the past. Also, I don't know if I consider a religious ceremony to be prostitution. I may not be exactly familiar with how it all works but the way I envision prostitution is females submitting to males in sixual acts in exchange for money, which seems to conflict with gender equality. Also, I always sort of pictured dibella (and by association, her followers/priestesses) as a TES representation of Aphrodite/Venus. So then her followers engaging in acts of love is sort of an homage to Dibella as opposed to finding work. Once again though, my believe is that done if it is done correctly, meaning with dignity and respect of course, and with an appropriate setting, then it will work. But I envision Imperial city and a bunch of trashy ugly nord women asking me if i want to have a good time tonight, and it seems incoherent with the setting of TES. But of course, going into a chapel of Dibella with a bunch of beautiful naked women is something i could easily see happening, and if one of them offers to "show me the ways of Dibella" then who am I as a mere mortal to decline such an offer?