It works though, DOA as a waifu simulator has exceptional appeal and especially with fap material which has always been affiliated with Xtreme since 2 anyways remember all the lewd bikinis in X3 are from 2. Also the fact that there was a DOA5 nude mode specifically to emulate Xtreme's sexy side on PC.
I mean, who wouldn't want a girlfriend experience with their favourite DOA girl? Many would.
Xtreme 2 had a line, though. At least they didn't go with extremely risqué outfits you'd expect to find in a Penthouse or Playboy magazine like, say, the ribbon stuff or mummy stuff, which unfortunately Xtreme 3 had gone with (and those costumes were actually taken from DOA5U, incidentally).
Also, Xtreme 2 didn't have many of the lewd gameplay elements that Xtreme 3 had. At most, it had that pole dance thing (which even that required winning slots multiple times regarding a certain machine, not to mention, dialogue from the girls indicated that some, such as Kasumi, weren't too comfortable doing it. I don't think there was any dialogue for most of the girls in Xtreme 3 AFAIK regarding pole dancing, and I definitely know that the girls that were in it, with the possible exception of Nyotengu, would not be the types to do that kind of activity).
And if your referring to the DOAHDM/Beach Paradise mod, that tried to avoid going into extremely risqué areas (for example, no masturbations, no sex, none of that).
And regarding PS Vita, remind me again why he didn't even bother releasing DOA5LR, or any of the DOA5 games onto Vita again? After all, if it's extremely popular in Japan, he shouldn't have ANY problem releasing it on the Vita. And besides, why the heck would he try to keep it Asian exclusive in the first place? The DOA5 games had about as many lewd costumes in there, arguably even lewder than Xtreme 2 or Paradise, yet those games didn't get banned outside Japan by the SJWs.
And quite frankly, I always felt uncomfortable with girls changing right in front of me (unless they're my wife when I have one where it wouldn't matter in any way since God made it clear such things are to be strictly confined within marriage). I was taught such things are completely immodest, and I'd feel uncomfortable even if they had me close my eyes beforehand. I mean, we guys don't change in front of girls, eyes open or closed, and if anything if we did that, we'd be slapped with a sex offender charge, so why is it that girls doing that is A-Okay? And quite frankly, Itagaki knew there were lines that shouldn't be crossed when doing the Xtreme series. For example, he utterly refused to have the girls participate in Wet T-Shirt Contests or Trampoline games precisely because they were so crass that it painted the girls in a very negative light. Hayashi right now is if anything utterly tarnishing Itagaki's vision for the Xtreme games.