It would seem that it takes a lot to make me flinch. I'd initially given Hypnox's site a very brief glance over a few hours ago, but just plumbed its depths a bit more thoroughly after seeing here some of the revulsion it inspired.
My conclusion? I'm a jaded, hollow individual. In other words, I didn't find anything particularly offensive. I don't state this to say other peoples actions were overblown or extreme, only to juxtapose and show not everyone holds the opinion that the artwork is too much.
Now, that's not to say I found it all so grand or aesthetically pleasing, either. Interesting, perhaps, but nothing that screamed "Lookie me! You will LOVE OR HATE ME!".
Keep in mind, I'm dead tired at the moment, and quite not with it. So bear with me.
Anyway, the greatest failing I see thus far isn't prurience or vulgarity, but pretension. Between the artwork, and the Valar site set-up, it seems to bear certain artistic similarities with White Wolf's World of Darkness, specifically, Vampire: the Masquerade and Mage: the Ascenscion, both of which have suffered from elitist snobbery at times.
Now, that's not to say that will be the case, simply that it's the one possible failing I can foresee. But the artwork? Well, I find nothing personally wrong with it, though I can see it not being some peoples cup of tea. It's nothing that would stop me from picking the book up, but then again, is nothing that would likely make me want to pick it up, either. From all I've seen thus far, I still have a fairly neutral opinion on the Book of Erotic Fantasy, though it doesn't hold particularly much appeal for me, at the moment.
Ho hum. Anyway, I'm done rambling for the moment. Perhaps I'll add something a bit more insightful once I've slept a little.