Jeff Koons is highly respected in the art community. He is known for a number of different sorts of pieces, varying in materials. Sometime in the 1980s (I think), he married a famous Italian porn star and subsequently created a number of famous, life size wax sculptures of them in the act of sex. What I love about the picture of the one above is that it was taken in the gallery, and gives you a much better feel for how these are actually presented, taken in by the viewer.
Perhaps, Koons's sculptures may conflict with some people's "idea" of what art is. But to me, I think it's funny because "sex" has been the driving force behind visual art since the beginning of art, ie. like for-ev-er! And women have been the "symbol" most commonly chosen to represent this topic in at least western art (this changes with other cultures, art outside of "western art", etc.)
So, maybe this actually isn't that exploitative? After all, it's not "woman" as the representation of sex, but sex, itself.
Or, is this so obscene that it should never be exhibited? Is it dangerous? Is it an insult to "real" art? And if so, then what differentiates art from pornography?