Since I'm an 3dx artist starting a game I've been also wondering the same, as anyone who has read my recent threads and polls can tell. I've also been doing research for a while now lurking around adult games forums and reddits.
Here is my take so far:
First, most people refer to anything with sex in it as "adult games", but I've come to like making the distinction between "adult games" and "porn games". Adult games favor much more story and character's depth. As such, people looking for these are much more forgiving about things like art quality and much less about things that break the immersion. While I think "porn games" are those favoring the sex and focuses more on the "physical" fetishes.
I think not many people make that distinction and so, "porn games" are often looked down as just "bad adult games" by those looking for "adult games". You can already see it here when it's been said that characters not having enough depth or hyper stuff being too absurd for a proper narrative are problems of the kink. However, if you like hyper content you would know already that shouldn't be a problem. I doubt there are many people hoping for drama, deep characters and emotional stories when looking for hyper content. Why? Well, hyper is mostly a "physical" kink and as I said that's really meant for "porn".
As you mentioned, there are plenty of creators making hyper content, not only that, a lot of them are very popular. So, yes, I do think there is an audience for games with hyper content. But the game has to fully embrace it, so people looking for an "adult game" know it's not for them and make easy to ignore those complaining about it anyway. Which there will always be. I mean, for crying out loud, I've seen people complaining about bimbos in games with "BIMBO" in the name.
So, if there are creators and an audience, why there aren't many games?
Well, I'd say often these are artists who learned for the sake of making art they want and just want to make their images and videos. Game making involves a lot more and takes more time. Moreso if they are already popular artists, why risk their income?
I feel artists making games it's often people who learned to make art specifically for making games in the first place. At least that's my case. And specifically talking about 3d, it leads me to this: it takes a lot more learning and effort to make good hyper content than the typical image for a vanilla game. So, the bar for making the game is higher and though there is an audience, it will never be as big as something a game like BaDIK can pull. Put all that together and you got a recipe for hyper games drought.
Anyway, sorry for the long post, it's just a topic I'm really interested about. I mean, this is without even getting into what really is hyper and what not
