It's one of the draws to people who are as trashy as sl forum users, yeah. You can still get in trouble if you try virtually sexual assault someone on SL, just by a report, it'll be classified as unwanted attention or something. Though the idea of someone being dragged into a court room over such a thing is an amusing idea to me.
But nonetheless, SL has harbored some numerous controversy over the years. Virtual Secrets, a virtual burn book, is evidence of that though currently it is down.