The original plan was to have at least 3 more levels after Chapel but this was before Poring had trouble with Steam, after the first ban he considered scrapping the project then and there but he committed to completing the game at this point instead.
It wasn't until Steam banned him two more times that he finally threw in the towel, Steam obviously wasn't interested in publishing this kind of content for whatever reason which is why Poring said hes going to have to tone it down. Its worth noting that the recently released Sadibus was also banned from Steam about two months ago, there are no explicitly loli character in that game so far as i can tell but the protagonist is shorter than many of the enemies in that game.
the 'reason' steam gave for that one is that the game was previously submitted and declined so perhaps it is an issue of people who have access to the early demo submitting it to Steam. Either way theres no way to know for certain whether it is this kind of content or something else which makes it especially frustrating to get the game confirmed for Steam.
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