Back when games were "just for kids" yes, they did. Especially when they hid cheat codes into games like Crash Bandicoot. That was totally wrong.
But let's face it, video games took off in the late 1970's to early 1980's. The original "kids" who were being fought for are full adults and have no desire to give up their favorite pastime.
So now they have a rating system. I don't expect to see sexually explicit scenes in games like Spyro or Barney, but in the adult ones like Fable, Mass Effect, and Dragon Age, why not? Mind you I appreciate it more for being a part of the story than for fan-service and hope many games STAY that way, but it isn't necessarily a bad thing when presented well.
(Oh, um, your poll implies I would want to see other women's breasts if I think sex in a game can be good. Please no? But I suppose this is the 3rd option, still...)