I don't blame the author for being upset about this because I can't see a reason to retract the submission to the contest. I do, however, feel like these kinds of sex toys are only minimally related to robotics, so I think they shouldn't have been able to submit their device in the first place. That's another fault on the end of CES. As sibling comments note, there's been vibrators on the robotics section before, but it might be that they slipped through the submission process as well and, to prevent controversy, let through unscathed. Now that more of these submissions come through the board seems to have decided that enough is enough and actually speak out against these just-if-not-nearly robotic devices.
Their defence that the product has been designed with the help of roboticists is very strange. If me and a few aerospace engineers build a fence that fence does not qualify as a space craft, no matter how many heat shield we stick to the side of it.
Spending half the page blabbering about empowerment of women and LBQTI+ only detracts from their argument. Their baseless claim of mysoginy and homophobia distracts from their reasons for why they should be included in the first place and should not have been included in this response. It makes the author of the piece look very unprofessional and desperate for help from some of those action groups that take to the streets the moment they see the word "discrimination".