At the end of the day, this is a sex game, not a shooter, not an action/adventure.
The basic premise is that the winner bangs the loser, not "leave-your-enemies-as-a-bloody-smear-on-the-walls". I mean, by rights, Steele should have probably lost a limb before they left Mhen'ga or be near death. But they don't. In fact, the worst that can happen to them is losing to Dane and getting mega-tentadick'd.
Its a sex game, meant to cater to the majority of users and I would imagine a game where you're fucking someone who has been shot, or is bleeding out doesn't really fall under that particular umbrella. At the end of the day, someone loses a fight, gets fucked and then brushes themselves off and goes back to whatever they were doing. Even when Steele gets knocked down to zero health, there's no mention of them holding in their intestines that have been threatening to spill out from their eviscerated abdomen as they walk back to their ship.
I think it comes down to two words "Health Points". Its a loaded term. You automatically think of HP being synonymous with bodily integrity, which makes sense as in 99% of other games with HP, if you get knocked to zero health, you're dead. Whereas, it makes more sense to think of it as Stamina and getting knocked down to zero doesn't kill you, it just leaves you exhausted. Yes, there's still the idea of having to justify surviving the various bolts, blasts and bullets, but then chalk it up to futuristic technology, or more likely, Fen and co not wanting that level of gore in the game. Its a sex game after all, the only beings that actually die are parasites. Otherwise, everyone suffers some bumps and bruises, then they get fucked and go home.