I looked that game up quick. It looks like a 2D visual novel done in Renpy or something. Again, apples and oranges. It takes a solo developer a couple months to put renders and story together in Renpy and have an early version of something. It would take a solo dev years, and a team a minimum of a year or so to put together something even remotely close to House Party. They're not even in the same league. Subjectively, if you're not into the 3D thing and your ideal of game play encompasses only needing the left mouse button, then by all means, games like House Party aren't for you, but for me they are the holy grail. Objectively though, there is much more work that goes into making a full on 3D game, and that's why quality ones are scarce.
You have a point with games getting more "tame" as they enter more of the mainstream, but that's really our culture's fault and not the devs. I would rather see the devs conform so they can succeed rather than die on that hill, because then we get no more updates from that dev studio when they run out of business.
Also, "started removing offensive scenes" is a stretch. This game has never been that over the top to begin with, and as far as I can recall, they only ever removed one scene.