@Vrelnir First I apologize for this wall of text, I had a brief flash of inspiration during one of my sleepless nights and felt the need to share it.
I had this idea about adding a depth to your dreams. It could be done that sleeping could trigger a sequence along the lines of current Romeo and Juliet, that could be both nightmares and pleasant dreams, or anything inbetween.
This would allow to implement practically any scene without the limitations of what's possible in reality and without consequences to the PC, other than some change to stress, trauma, arousal... depending on the dream and actions taken.
These could be something simple like ghost gangrape or a quick dream about you happy future with [insert your favourite character] (maybe a wedding?), or something more involved - getting kidnapped by Kylar, where they could then have their way with you/confess their love, or getting revenge on Whitney, where they could halfway through change into you, and you into Whitney for extra trauma?
Pure virgin could dream they're a succubus, seducing men left and right...
You could even play the role of completely different characters in your dreams, like a whaler swallowed by a whale, or pirate captain taking loot to his secret stash - for bonus points, retracing their steps could lead you to a treasure. Possibly even a dream from the past of the forest lake ruins?
And if you truly wanted, you could go all the way to the dark side for some more extreme stuff like gore, amputations, cannibalism...
Some of those drems could be triggered/unlocked by specific conditions - reding a book (in library/class?) would let you experience it in a dream for example...