All the reasons (the way how western vn are funded and why they contain so much sex on every corner) were laid out for you by pasunna.Haha, Katawa Shoujo is exactly the point. It's not a Japanese VN, it's a western VN written by people who actually read and studied high quality japanese VNs and wrote a free english VN with no money almost 10 years ago. Now with a much larger community and more money still nothing comes close it's bizarre.
In terms of the skin it's just a matter of writing skill. The writing needs to be compelling enough to stand on its own, and if it is then you don't even need sex at all. FSN and others have completely no-sex sfw versions because of the high (enough) quality writing. And one of the stories I mentioned above ever17 isn't an eroge at all. If you need to have sex all the time, it's probably because the writing isn't good enough.
Plus Japanese people are more experience in this type of games and more skillful at writing coherent stories etc. Most western games are made by 1-2 people in their own basement who are new to the scene. You can't compare a medium which basically is new here to Japanese were they honed skills for decades now.
But western scene throughout last few years made a big leap and still evolves.
And to be fair, there are quite a few good VN that mimics the Japanese game style pretty good. Some even don't have sex scenes, but they usually end up in steam and they're not popular here.
Though I have to say, most Japanese VN/, as well as other mediums (anime, manga), are greatly lacking originality. Only a few authors can create something of their own. For example fantasy worlds. Most of them are generic cliche worlds compared to brandon sanderson mistborn series world building or many, many other western authors. You saw one picture of Japanese fantasy world, you saw them all (exaggeration, but not entirely false) That's why I don't really enjoy asian VN myself. Most of them are the same, though the stories are coherent and laid out logically and well, but boring most of the time about same stuff, situations and characters.
Speaking of Western VN with rich story, it literally took me 5 seconds to find a well received VN made by russians called Everlasting Summer.
And to add to the discussion about "nukige", it's the same in Japan. Lots of companies have to relly on sex filled games to fund their endeavors of creating a rich story games. Even famous manga creators had to draw porn to keep financial stability before they hit gold. Nukige sells fast and easy. It's not something unique to western market.
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