Earlier quoted context omitted.
These conservative groups aren't pressuring Steam and Itch directly, they're targeting payment processors. I don't think it's realistically viable to compete with Steam (or Itch) without access to Mastercard and Visa. (For anyone thinking crypto: we have a different idea of what it means to be either "realistically viable" or to "compete with Steam")
they're targeting payment processors They're not "targeting" payment processors. Payment processors have to deal with significantly more problems due to the nature of porn games and chargebacks. Fix those problems and the payment processors won't have a reason anymore to ban porn (or anything). What's the point of a capitalist economy if not for startups to target market needs like these?
Charge backs, etc... can be effectively solved by appropriately pricing in such risks (or not offering those services at all).
This isn't a payment processor issue, it's a political choice.