I think no. Let's be honest - which politician wants to be remembered as "that guy who made porn uncensored"? Fighting all the conservative groups for something that's not worth much political points.
And for the second question - also no. Let's see:
- Work culture is so bad, they have a specific term for literally working to death.
- Social anxiety is a huge thing, big enough that it's not unusual to see restaurants with individual booths, so people can eat without ever seeing or talking to another human (yes, not even the person serving them, just a pair of hands).
- Massive, overwhelming entertainment industry that cater to these people. Anime waifu culture is one aspect, but there's so much designed to appeal to that "cute girl/boyfriend" need. Who wants the hassle of a real life relationship when they can get all the best parts neatly packaged for them?
- Porn and sex toy industry. Again, catering to the people above. Japan has multi-floor sex toy shops. If a fella wants to get his nut off, which makes more sense - going out and trying to pick someone up (who knows how successful they'll be), or just slap down some cash and get the latest WankToy9000 that's guaranteed to give you orgasms within 30 seconds (reusable, too)? Go for a walk after dinner and get one, you can squeeze out 3 nuts and be in time for supper.
Compared to all that, pixels on genitals isn't going to make any meaningful impact on the lower sex drive, I think.