It's more a death spiral.Is there the usual sluttyness event horizon where you get stronger instead of weaker from all the sensitivity and arousal debuffs, or is it supposed to be a bit of a death spiral?
There are a few ways to make a slutty build work (usually train endurance, energy and dex), but the basic idea of the game is that you have get to the end before she's too far gone. There are slutty passives that are good, especially the ones regenerating energy, but in the end they cannot outweigh the negatives from all the passives you get.