Absolutely hit the nail on the head! As far as I’m concerned, if no REAL person was harmed in the making/distribution of a thing, that thing is okay, no exceptions (Unless I’m missing something very obvious).
I want to circle back to the original post and content that sparked this debate. This thread. And in particular this video from DLsite [3DCGI Loli Warning]
I believe the argument was that it’s more realistic than most 2D loli art that is posted here, but I simply cannot see how any functioning human being could mistake this for a real person.
I believe this content should be allowed, how it should be tagged I guess would be up to moderators, but I personally think the loli tag is sufficient.