Yes, this is DS9's first Ferengi comedy episode!The Nagus
Hmm. Hmm indeed. Interesting. So this is DS9, huh?

That's because Ira Behr tried to make a career as a comedy writer before settling as a dramatic writer, and this is one of the reasons why DS9 had about two or three comedic episodes per season. In fact, Ira Behr's only two solo episodes on TNG were Captain's Holiday and Qpid.The following just screams 90's sitcom. It's like a Full House episode.
"The people of 1993 played around with the idea of having *real* holographic sexual simulations. This shows that in they're world sex was associated with bad consequences - whether a punishment from God or an unwanted disease - and all their mental capacities where used to dream of means to experience "real" sex without the consequences.

One thing you should do after watching The Nagus is to completely ignore the way Rom was portrayed as it is nothing like the Rom of the rest of the show. In fact, the idea that Rom would ever try to kill Quark makes no sense given everything that comes later, it's just so... un-Rom.