Armor break is kinda irrelevant because theres no emotional response from anyone. It's just nudity for its own sake. I prefer sections of the game where normalcy and decency is enforced to have bigger impact when its time for sex. Casual nudity in public is the worst thing. It's like snacking on snickers bars while waiting to get to the meal, the meal wont be as good.
Normal people should just refuse to talk to people who look messy. The message should be "go take a shower and put on clothes if you want to talk" from most npcs.
Badge being off prob just leads to rape which is inherently boring.
I hope they finally get to proper lezdom with the girlfriend at some point.
The entire world in this game isn't normal though.. the whole point is that because of Peitho it's become a depraved near post-apoc scenario where sex is currency, and women are basically cattle with some shining exceptions but no one is normal. Plus the game's got a pretty strong humiliation/corruption theme going for it, that's what most of the scenes are past the point where you have more of a choice in them. It always devolves into J. having way too much fun cos even the air is probably corrupt.
There shouldn't be an emotional response, just a "oh you have a badge, but fuck you're hot" or "ay, free pussy" or "lol you got shredded." Sex, nudity, depravity etc. are about as casual as it can get in this universe, in this timeline or whatever, and not every NPC needs a scene to accompany a reaction. Also I don't think this game has a single real rape scene. Maybe at the very beginning with Karen but easily 95% of scenes so far are things you choose to allow, even the NPCs are like that so taking the badge off kinda assumes you're doing it with a goal in mind, otherwise you go pure.