I think her point was sound, even if her delivery was not entirely PC. That is, some who feels it's OK to make any kind of jab or derogatory comment because "it's a joke," and accuses anyone who objects to their comments as being uptight and humorless, should be prepared to accept that same behavior when they're the ones on the receiving end.
Do people really play in games where the detailed off-hours behavior of the adventurers gets into more detail then "We blow our treasure at the local whorehouse, then in the morning we head to that meeting with the Baron"?
Thinking about it, the only time a major in-game reference to sex has come up in the D&D game I'm in was when our group learned about part of an old legend. We know that one particular demigod had been surprised and slain by another demigod (evil). What we didn't know--and stumbled upon, during some planar adventures--was that at the time, the slain demigod had been in an "amorous embrace" with another powerful being, an ally of our party.
The DM didn't describe the encounter in any detail. All of the PCs had different reactions to it, from "Ha! Good for him!" to complete and utter embarassment and mortification.