Horses for courses, I suppose. I've never been interested enough in "clitoral penetration" to make a character with a clit that big.
Given that this game has only a single dev, it comes down to priorities for me. What is the more pressing priority, catering to the small minority of degenerates who want their fictional MC to be able to fuck fictional NPCs with their clit, or catering to the vast majority of degenerates who want the game to expand to Elis and the goddamn Foloi Fields so that they can indulge their perversions on a larger canvas?
While it would certainly not be a dealbreaker for me if Inno made clitoral penetration functional, if she doesn't get the game out of Dominion and get the main story moving again, she's going to hemorrhage subscribers. If that starts happening, it's only going to be a matter of time before the money she makes from developing the game shrinks to the point that it she can no longer treat developing it as a full-time job. At which point, LT joins the long list of abandoned smut games.
Which I think would be a pity.
At some point, the entire system is going to have to be overhauled and streamlined anyway. She's much better off pushing forwards to a playable v1.0 then leaving something this specific to v2.0 when she has a full overview of how to do such an overhaul. And, as SqueeNoEvil mentions, you can just give a female character a dick.