If we consider the consequences
beyond the time loop, the MC's memories will influence his future actions, even when nobody else can remember them. This might also apply to some of the players controlling him, who have issues separating reality and fantasy.
A game like that could get very dark, very fast. What happens after the MC has raped every woman in town hundreds of times and needs something more extreme to excite him? Torturing Tom to death in thousands of different ways might be satisfying for the first few days, but the longer you did it, the more extreme and graphic you'd have to become to maintain that level of satisfaction - with predictable effects on your own mental stability. If the time loop ended, the MC would have to be incarcerated or killed for the safety of the public, as he'd be beyond redemption by that point.
Slapstick violence for comedic purposes is part of human nature, as well as pushing the limits of propriety because 'its only a game'. Go too far past those limits and you can open the door to some real horrors in human behaviour, which might be one reason why Inceton appear to have set theirs. If we end up killing Tom or his equivalent in future chapters, I'm sure they'll find a way to make it funny, without dwelling on the negative possibilities. Joxer was an irritating character most of the time, but he had his good points. Tom doesn't.
Agree that no game will ever satisfy everybody with the choices available for MC's, but these same strictures can inspire personalised fantasies from each player, letting them rewrite the basic structure of the plot to suit their own fetishes. If the game provides a decent foundation, well thought out characters and leaves lots of possibilities open, we all win.