Don't worry, I completely understood what you meant to say. And what my reply implied is that, if faced with a choice, I will always go for improving the pixel art over CG art, so choice number 2 in your case : )
That's one of the main reason why I use pixel art: interactability. Sure, it's also cheaper and thus allows me to have more of it, all entirely animated, but having a world that can be interacted with as opposed with a CG that can only be looked at not only makes the game feel more alive, but it also gives a certain sense of control to the players, and thus they might feel more personally involved in the game. This kind of connection between the player and the game gives yet another dimension to the NTR itself that you might not get in CG-only VNs, for example.
The idea right now is to keep this format for as long as possible and then branch out into having more people take part in the sex scenes. Another thing I had in mind was to make two different NTR endings: one centered around more 1-to-1 NTR, and the other having the women turn into some kind of public use sluts. Since I'm not planning on doing a True Ending anymore for HC3, having an extra NTR Ending might work.