When comparing Options 1 and 2, it is difficult to say.
You might want to use a blend. As the omni-intellectual who creates everything that everyone loves, I shall decide.
When your character is directly talking to someone, then you want them to face who they are talking to. When they are making a monologue or a conversation that can lead into a monologue, then you want them to face away. So you want "Mom" to face "Sister" when she is directly talking to her and then change to talking away when she is speaking but more likely to speak to herself even if there is intention to talk to the "sister" because it is part of the setting commonly used in plays and stories where characters speak but the purpose is to speak to the audience or reader rather than an actual character even though the conversation hasn't actually cut away to who that person was talking to therefore avoid breaking the fourth wall.
Trust me, you will all thank me.
*EDITED*
Also, as the great one who creates great things allow me to give you twelve articles of intrigue that were missing that would make the game far more enjoying to play, six of which are conceptions from the game Urban Demons is based on, which can also be found here and if you know what I am talking about, good for you. I will * next to the number to indicate what are those six ideas to differentiate them from the rest.
*1) Fucking the mom in her sleep.
2) Fuck any and all other available women (and lolis) in their sleep, using your demon magic of course or cheats.
3) For Xalenda, PREGNANCY FOR ALL, because Xalenda, the God of Curse (and I mean curse, like you are uploading something onto youtube and you know you'll get demonitized for it, that is what Xalenda is the God of, maybe I should say God of Demonitization) loves a good baby belly, if you know what I mean. So you can impregnate Amanda in her sleep (yes, she is a loli) and events will play out recognizing she is pregnant before you can even get to her to do anything with her mom. You can even get Kimberly to fuck Amanda while either or both are pregnant.
*4) Fuck Amanda before you talk to Kimberly. I think there should be a random chance that Amanda can be found playing a prank on her mother, which in turn makes Kimberly very worry, but allows you to go fuck her. Could even put in that slide that you fucked the anonymous girl Amanda is based on from the same game that predates Urban Demons, so you can have that same interaction. Probably could even impregnate her right there too.
*Scenes*
Fuck Amanda in slide (pussy or ass).
Play in Water and get Amanda Wet.
Get Blow Job from Amanda while playing in water, Kimberly get shocked (but later forgives) or Kimberly allows it
Fuck Amanda in water, Kimber gets shocked (but later forgives, also lets you finish up no matter how angry she is about it, hinting she might like seeing and watching her daughter getting raped) or Kimberly allows it and even compliments you how good you raped her daughter.
Get Blow Job while playing hide and seek (both options of you hide or seek, and with or without Kimberly watching).
Fuck Amanda while playing hide and seek (both options of you hide or seek, and with or without Kimberly watching).
Get a blow job or fuck Amanda at home. You can invite her to your house as a guest and fuck her basically.
Get a blow Job or fuck Amanda at her home, without Kimberly being involved. You can ask to play with her, play a special game and it leads to this outcome.
*5) Fuckemon. That is what I call them. I think they called Sexamon or something like that. This was a trading card game in the game predating Urban Demons. You had naked and anthro pokemon with huge tits. I am surprised Chilly didn't incorporate this back in since he is big into furry women. What is the difference between a Rapidash and a Pony? Nothing except Rapidash is smoking hot! Besides who wouldn't want to fuck the most fuckable pokemon, Gardevoir and Loponny, especially after this:
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. Implementing a game in a game is difficult. One way which matches closer to what Chilly might prefer is that you encounter random phantoms which is similar to Sexnote but are actually servants of the Imprison Demonness that when you have sex with will increase your corrupt energy, which is an alternate way to raise your corrupt energy than by other means that might be out of character of how you plan to play the game. So they are randomly place here or there and you can fuck them like time had frozen or whatever. Increase your corrupt points and what not. How many fuckamon should there be? Depends on what YOU want or what Chilly would had wanted if he had any interest in this, or Xalenda. I am sure either would go for a smoking Rapidash, I know would. Gradevoir and Lopunny are a must. I would even including the Hex Maniac, even though she isn't a pokemon. Could make her one. She is a creepy enough character to fit in. But remember, it is not Pokemon. It is Fuckermon or Fuckamon or Sexamon or whatever. Phantoms that take on the form of images of your childhood to make you fuck them and gain corruption points. So even Ankha could be put here as well as those custom fuck images already made in Chilly's mod.
6) With that noted. I believe there should be an implemented system with those corrupt points that not only allows you access new features, but how often you can use those features. A cost and reward system which is sadly missing in this game. There should be a par or mechanism showing how many corrupt points you have, indicating what you may need to go invisible or teleport or corrupt others. Do know this is a good means to take pictures and score more money which you can use to buy more things with without needing to cheat or wait an insanely long period of trying to collect change.
7) When you corrupt others, they are more willing to be flirtatious and fuck other people, including yourself. You can get raped by your sister, mother, teacher, neighbor or anyone. Therefore, scenes might change with newer content. It depends on how corrupt they are. Also when they engage in sex their corruption will go down, unless the sex is with you.
*8) Dream realm. This was also in that same game, but I think it was oddly utilized. But I think it should be that you can enter someone's dreams, which should be different for each character and for different parts of the story as well as the emotion the character was in based on your interactions for that day if at all. So you can rape them in their dreams, not just in their sleep. Or get them to rape you in their dreams. I am sure Xalenda can come up with something if you ask and offer enough time and Xalenda was available. He has a knack at that kind of stuff. Imagining sex is kind of his thing. Plus it takes less time writing it out than it does drawing and coding it.
9) Fuck Alison (Amos's daughter) without needing to proceed with Ms. Amos as a relationship.
*Scenes*
Get a blow job or fuck Alison at school, with or without Ms. Jenning watching you. She might tell you to stop and force you to have detention, which can lead to having sex with Ms. Jenning, both being sent to detention, in which you have a threesum, or she might just watch and compliment you afterwards.
Get a blow job or fuck Alison at home. You can invite her to your house as a guest and fuck her basically.
Get a blow job or fuck Alison at her home, and not with Ms. Amos being around or involved. When you ask for the option to play with her, it can be one of these options in which you can lead towards having sex.
I also think having sex with purple hair girl (Kelly) is also kind of part of the Alison's Arc in the story.
Kelly - you can also get a blow job or fuck her at school or bring her home for the same, if you become friends with her. You can also have a threesum with her and Alison or Amanda or a foursum with all three depending on your progression with all involved persons.
*10) Pixie fucking. Yes you get a pixie in that game (Sex X Life) that rubs herself against your boy cock to get you to cum. You could make that something you gain. In fact that is something I might consider changing from the original sets. Instead of just gaining powers as you progress. You gain powers as you use them and become more proficient. However, you progress further into your hell dream, the more ways you can accumulate corrupt powers such as randomly getting fucked by Hell Pixies which are Pixies that go after little boys, sort of like Succubi in original Hebrew Mythology. This should be something you can skip if you want to, but you can also interact further, grabbing the pixie and then shoving your cock deep inside of her tiny body. You could alternatively make it so you can also lose corrupt points if you don't use them up before going to sleep and not entering the hell dream realm if you prefer. Your choice, man. I would maybe have that settle with a poll on what people want. Personally, rethinking about it. If they fuck you, you lose corrupt points. If you interact with them, you gain back plus additional corrupt points. I believe that falls better with how the game is structured.
11) Invisibility fucking. You can fuck women while being invisible. At any point and at any time. Imagine fucking Ms. Jennings while she is teaching.
*12) There is a high school girl that is missing that you can do in that game (Sex X Life) that hasn't been brought over into Urban Demons. So this is sort of part of expanding the High School bit I suppose. I'll present images of some of what I was talking about. And no that is not Kimberly. Kimberly is a Nergal creation.
Also about Rapidash:
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More Rapidash:
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Closer to the artstyle of this game:
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