I'm doing it differently this dev cycle than I have previously. I used to do it event by event coding->scene art ->animation, this time I am doing each category of task on it's own, so I did all the coding, I just finished all the animation (which does of course require art), and now I'm doing scene art. While they both involve a bunch of drawing, because of how different the tasks are in terms of workflow I separate them like this.
You have it right though, the Scene Art section is for the art that isn't sex scenes