The timeline itself is actually an alternate reality. At one point history changed, and the entire empire was changed for it. Nearly anyone who's played are aware of the Day of Thunder. If I had to compare it to anything it would be the 1000 years of darkness campaign setting. The Thunders(Champions from each clan) failed and Fu Leng's influence spread across the empire. Most of the great clans are in ruins, though the Crane, Lion, and Phoenix are still intact. Just corrupted serving the current emperor, Daigotsu.
Now don't get me wrong this isn't the entire story for it. I have a lot of things that will be revealed to the players as the game goes. And I'm still altering a few things and so on.
Now onto the sex question. I was thinking Exotic. Because while I respect those that only want vanilla situations, which I will happily allow, I want people to live out fantasies. I have ideas for literally ranging from tentacle rape, to rape by undead, to mind control through Taint, to other things. I wont demand that people get involved with something. When it comes to sexual things in games I run, I want people to get exactly what they desire out of it.
As for what the players are to be. I literally leave that up to the players. I am even willing to allow players to play oni if they choose to. Note the Spider/Shadowlands clan option. Depending on what people want I may or may not change the main idea for the plot that I have. I want to build a plot based, mostly around what we have. We may end up just doing the 1000 years of darkness. But we might end up doing something else.
If we have a team of all Samurai, while that will make it difficult in some situations when diplomacy is the thing required, but then again Samurai can be capable diplomats. A team of all monks would make other things difficult. It's all going to depend on what YOU, the players, want to be!