Magnificently done. You can learn something new every day.
I agree with the first part--and I'm not one who has a problem with sexual content. It's just that this author went as far as to stuff his MC into the closet for lolicon's sake: he was already into the best girl in the setting, but of all the characters he's shown as being unable to resist, it's the androgynous ones--even when he knows one of them is male.
That said, the story is good enough to ignore that: I emphatically disagree with the author's hidden message in his worldbuilding (i.e., "'weapons' are evil"; people will find a way to kill each other without regard for one another's circumstances one way or another, as you see in this chapter) and consider it effeminately shortsighted, but it--and the execution--nevertheless makes for an interesting setting. The characters are good, too. Enome is peerlessly beautiful and Esyne is charming in her ways, and I like San a bit too (which is a bit of a surprise; normally those women that exhibit dominatrix-type traits are loathsomely written--San isn't, as she doesn't go overboard with it from what I remember). Of the male characters, True and Shock interest me--the latter in particular, as I wonder what he can do (and hope it's something cool).