I found this to be a rather poor story, certainly one of the weakest offerings in Escape Pod since I started listening.
The story didn't work as erotica. Cutting between the two narratives just killed any sort of empathy offered by the professor scenes (which I didn't feel to be entirely that effective on their own right, and the silly accent didn't help). Nothing says "sexy" like a corporate executive investigating marketing opportunities. And both threads mostly involved telling us about sexual activities rather than showing them to us. I'm not saying it should have been more explicit, but there was barely any emotion, let alone passion, there. The handling of the professor never scratched the surface - we kept being assured that she's very sexy and that the class hangs on her every word. But we never saw the class's POV so we couldn't share this, and the only part of it we shared with the professor is the satisfaction that comes from success - but that's meaningless unless we go through the process with her. The main problem, though, was this was a story about a fetish that I do not share, nor am I disturbed by it. In order to arouse any sort of emotional, let alone sensual, reaction, the story really needed to help me understand *how* the students felt, and a better view into the minds of the faculty as well. As it is, we were just listening to Computer Science 101 and being told that someone else found it sexy.
The story didn't work as an actual story, either. There was no plot to speak of at all - nothing actually happened. And it didn't even work as a "snapshot of a culture" kind of view - Just like we were being told about the sexuality without experiencing it, we were being told about how succesful this experiment is without being shown. "The graduates are exceptional", we are told "and the problems are minor. There are some issues, but I'm sure we can overcome them all. Oh, and here's a list of possible improvements that can be made". Ok, I'll suspend disbelief and accept all that - but then what? Compare this to "Start the Clock", another recent story that described the life of humans that underwent a change that made them different from us. By the end of "start the clock", I had a good grasp of how they were different, what was good about it, and what wasn't. I knew what the issues they faced were. In this story, more attention was given to the fact that the buildings were not painted than to a botched nerve-gassing. But neither of them was more than a hint of an off-screen conflict.
Basically, it seems that the only thing that this story has going for it - and I don't mean this ironically - is the middle-school level snickering at a fantasy, of the "Imagine if all the girls in school were naked all the time" type. A cute concept, and the basis of many a fantasy, both middle-school and beyond. But this story seems to take the view that you don't need anything more than that - it neither creates the actual fantasy, nor does it provide any additional depth. So I'm not sure what we are left with.
Unlike the previous poster, I am not of the view that it is impossible to write a good story based on this premise. On the contrary, I think there were a lot of opportunities to take this concept and go with it. Heaven knows that a lot of great SF (and great erotica) are based on basic premises just as silly. But I don't think this story took advantage of any of those opportunities.
(One idea I just had - the ending mentioned possibly sending someone who was morally opposed to the school to do a documentary about it. Why not use that as the basis of the story? It would have given ample opportunity for all the exposition given in this story to be relayed, but at the same time introduce an actual conflict, and if even moderately well written, would make us as readers get involved and take sides.)