The furor has died down a lot, but it was a pretty big deal right when it came out.
Ignoring the puritanical reaction of "OMG...young adults are talking about SEX!", most of the controversy seems to focus on whether a) students were told in advance exactly what was going to happen (since this was not during actual class time but was a voluntary talk), and b) whether something like this should be allowed in university facilities.
Personally, I don't have a problem with what the professor did - so long as students knew what they were getting in advance. If you see the reactions of students who actually attended, nobody seems to have been offended by it - or if they were they simply walked out when it became clear what was going to happen. Most of the outrage seems to be generated by people who weren't even there and have no right to be offended by it.
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