They also change a bit of dialog as well. Some fan translated ones I played untouched by Kagura feel more original and a bit more hard core. I did a some of comparisons and yes, they do fix a lot of typos and some bugs but I still feel like they make the "softer" than what they normally are.
Yup, there is indeed some work to be done, but a lot of the heavy lifting is completed by the fan translator in most cases. And you're right with the fact that they make it "softer", for they have to appeal to the broadest demographic of porn gamers and don't want to turn them off with extreme content. Remember that many of their customers are also first time buyers on steam, who don't have much experience playing a wide variety of hentai games like us here.
Basically, any game that gets fan translated, Kagura will release their "official" version as well.
The problem is that if Kagura goes onto gain great power in the porn game industry and bring in large amounts of revenue, they will dictate the kind of content to be sold in the West, therefore forcing Japanese devs to alter their game and make it tamer. They will literally become the Ubisoft or EA of hentai games in their direction and way games will be made.
This monopoly can only be countered by other translators such as the dlsite official ones, but the biggest USP that Kagura has are uncensored games, which dlsite cannot accommodate.
