Why would that be shocking? Pedophilia is a mental condition, being attracted to minors. You can get therapy for it.
Fictional content involving minors in sexual situations is usually in grey area in many countries; it's just usually not defined clearly in law. Morally speaking if no minors are hurt then people should be fine with it. Steam can do whatever they decide which usually is on a safer side, or whatever mastercard and visa force them to do which are being pressured by crappy religious organizations in the first place. It's the reason pornhub banned unverified content, you still cant buy videos on modelhub, and why r18.com is closing. They have monopoly on card transactions so they can do whatever the fuck they want, and they're the real problem here.
Aye, you're right. Honestly it's crazy. If it doesn't hurt anyone else? Then just fucking leave it alone.
Though we could argue that even if it were 100% legal, it would still be problematic. I mean, imagine you're playing a vanilla wholesome lovey dovey game and boom suddenly there's NTR and bestiality forced upon you. Jarring to say the least, huh?
It's the same here. People don't really expect to see kids getting raped in their porn. Although if it's Japanese, they ought to expect it, I mean there's only like 5% of Japanese games without a hint of children in them.
Personally? I'm OK with lolicon existing and I would vote to just make it legal.
However? I'd also vote to make it exclusive. Either you make a lolicon game or you just don't add lolis at all.
That mental condition isn't compatible at all with the rest and it's just a disservice for everyone involved.
It's like giving you a jewel but it's inside a jar of diarrhea and vomit. Not everyone has the mental fortitude or the heart to sift through that.