The only r34 there was possibly going to be was in a small scene at the very end of the game if you successfully romanced somepony. Some members of the original team were all for adding it, but there were a few who were against it. Over time, old members of the team began to leave and new members joined. Many new members opposed the idea of having r34 and soon it was decided to discard the idea.
Even though this idea is scrapped, almost nothing has changed for the game. Love is Magic was never meant to be a porn game, but a dating and relationship experience with the members of the MLP universe and an intriguing storyline. We have not strayed from that. We will still have intimate and romantic scenes, but they will not be outright pornographic in nature. We don't really know how saucy/intimate those scenes will be (at least cuddles and kisses are confirmed), but we'll see later. We don't think that we have strayed from our original goal as long as we still have those romantic and intimate scenes, since romance is what the game is all about.
We want to stress yet again that this is a Visual Novel, and we're going to keep it classy. We're absolutely not saying that explicit sex would necessarily make it any less classy, but this was never going to be some porn filled Dating Sim.
We are very sorry for this confusion and any inconveniences it may have caused. We know that many of you were disappointed by the announcement, but we hope that you understand why things turned out like they did now. We also hope that you will still be able to enjoy the game, and that seems to be the case with most people. Some, however, were very disappointed as their expectations were let down and lost interest in the game completely. If you have donated to us and feel like you have been mislead, please contact us and we will give you a full refund.