The difference of quality, features, and definitely camera controls, in the videos of Second Life and Lively are amazing. I don't see many people jumping from SL to Lively just yet, maybe after a few more new versions of Lively?
They really do have a lot of work to do to catch all of those types of rooms. Even if they don't call the room "sex" this or that, the content in the room may still have it in a YouTube video or something. There really is no clear line in the sand!
Lively sure is fun. I'm glad they released the beta finally, but it is very beta-like. I think it can grow into some norm for 3D web chat but it's hard to tell if it will compete at Second Life for a while.