This is a topic I never suspected I would talk about on here. 0_o
In America it's very illegal, and countries are pushing for it to be illegal in Japan.
But the reason people are against the supporting of creating that kind of content is because they believe it encourages serial assault against minors. It's actually not too far on the line of thinking of people who want to ban violent video games because they claim it causes violence.
Either way, if there's a link there or if there isn't-- I do think as a society, we should encourage those people with those tendencies to get help. Outcasting them/ leaving them alone is why these horrendous acts perpetuate. Allowing them to get consuling, and professional help before they commit these crimes is a more effective tactic than just labeling them as sex offenders. These people need help.
Of course, if they do commit the crime, they should serve the time. But helping those people before they act is a crucial step missing in a lot of countries: including Japan: which underreports child abuse --which Rapp doesn't mention in her essay.
People are awful puritanical when it comes to this topic, and by no means am I defending child molesters or those who participate in the market of real life CP, those people are truly heartless to prioritize their lust over the wellbeing of children and should be reprimanded accordingly, but you can't help who or what you're attracted to, and repressing desire is also no good. These people need an outlet for it, and if they can find one in hentai or whatever kind of drawing does the trick without hurting anyone, I feel widespread prohibition on such things would cause more harm than good.
Like you said, the argument against legalizing these images exists in the same vein as video game violence begetting real-life violence.
If you're attracted to children that's really horrible for you, but you can't change that about yourself no more than you can change your sexual orientation, and if you can express that desire a way without harming anyone then imo you don't deserve to be grouped in with those disgusting, selfish people that would directly or indirectly take advantage of actual children.
I do agree seeking help is also a worthwhile endeavour, as long as those providing aid try to appeal on an empathetic level and show those with untoward sexual predilections the harm they can cause, as counseling away the pedophilia is tantamount to praying away the gay. You can't "cure" what you're sexually drawn to, so I can't imagine outlawing one of the only means these people can help deal with their "condition" is ultimately beneficial.
However regardless of where you stand on pedophilia, if you work as a mouthpiece for a company, especially one with a large audience of children, you just keep those thoughts to yourself, or at least relegated to your private life.