Is it that it's supposed to be realistic? But the stories themselfs are already really unrealistic (nudist camps are not sex paradises, etc.). It seems to me that the whole "kids seeing/being around sex" is some sort of fetish in this story, which is rather a turnoff for me.
But if we leave the moral highground for a moment, as far as I've read School Dreams 3 originally was quite explicit about the fact that the girls were around 16 years old. As far as I know goblinboy changed this to appease some AIF forum, but probably also from a legal point of view (even though the age of consent may be 16 or even younger, pornography is still 18+). Naturally the images are still exactly the same and it doesn't take much imagination to see that some characters are clearly meant to be 16 (even apart from the whole high school background).
Having looked through the thread for SD3 (http://the-new-lagoon.com/viewtopic.php?f=3&t=130) I've found no sign of anyone taking offense or indeed referring to sharks rules. (On a side-note, admins, look at how that thread started, a link! And not by goblinboy himself! And this is what these forums should continue to allow, after all in this case it sparked almost 50 pages of discussion).
But this isn't a justification to put 5 year old children in an erotic game, in my opinion that is just not done and it serves no purpose.
Edit: Squeeky's post came in while I was writing:
Squeeky wrote:Now I am concerned that the middle girl is somewhere between 15-17. She is "featuring" in an activity which (of that perceived given age) does not comply with the rules.
As I mention above this perceived age is also present in SD3. As long as the story is not explicit about the age I don't think there is much of an issue. After all the SD3 thread has been on here for 2 years without any problems.