You weren't kidding about the LOOOOOOONG wall of text
I like the CH idea, it's exactly the middle ground we needed. As for the new character angle, I knew you had plans for cut-in views, but it obviously sounds expensive to make, so tread lightly. Inflation is hitting hard everywhere, and it doesn't seem like the best time to spend a lot of money, if you yourself struggle to make ends meet.
Instead, better X-ray, more sex positions, smoother sex animations would save a lot of development time, money, and effort... and relatively easier to achieve too.
Get well soon Unaware!