Kiyal
Explorer
Eh, there is a difference though between having a fantasy story with some romance or sex mixed into it and a romance/smut story with some fantasy elements thrown in as a background.If it's got dragons and elves and orcs and stuff, isn't it fantasy? Plenty of fantasy has had sex in it. Fritz Leiber had Fafhrd and the Grey Mouser getting down with ghouls, rat-women, invisible flying people, etc.
I'm not saying one style is right or wrong. Read whatever you like. It just simply seems to me that the later seems imho to fit better in the romance section of a bookstore over the fantasy/sci-fi section.