Even if it was, I view it as the opposite of a Mike Tyson/Wrestlemania 14 situation. On the one scenario you lose money on an angle but it leads you to making way more money and better ratings down the line. On the other scenario you pop a ratings boost with cheap smut but lose a lot of fans through the tasteless, seedy nature of the angle, not to mention all the people who maybe stopped their young kids getting exposure to WWE because of 'hot lesbian action' and the other stuff they were putting out.
Parents letting their kids watch late night TV objecting to content? That's absurd.
Late night TV? Smackdown has always aired from 8-10.