Heh... I still remember the news about the Al Kharid "services" bust too... And reading two people getting it on in the guards quarters of the palace a few years ago.
You have to consider that a lot of players from the past have moved on, and more and more people are coming in, particularly from younger age groups, who in turn have experienced quite a different upbringing than some of us older people. Look at the Disney movies, and compare movies that were shown to six-year-olds then to the ones they categorize as "G-rating."
Is RuneScape a social network? Yes, but honestly not because of the overly sexual names. Any internet game you play consists of a community that will create networks of friends who will interact with each other using the same social signals as we would in first-person interactions in real life. And people will role-play, get a chance to get away from their personalities in real life and make something bigger of themselves (no pun intended for the male anatomy), or simply to just have fun.