Sexy? You bet! I's love the bawdy bard! (trying to think of a particularly bawdy line off the top of my head and blanking).

So many words? Yes, Shakespeare wrote with a lot more words than we use today, but his plays were done in a different context than in a modern theater -- outdoors in broad daylight, with the only "set" on the stage being a about four doors leading in different directions and maybe a chair or two if the scene was indoors. Therefore, his actors had to describe the scenery. That he could do it in only 77 words is what I find amazing.

I, personally, think Shakespeare was one man, and that he did write the plays... mainly, because I think conspiracy theories are simply far too complicated. As for the wide differences between his plays, I'd say: of course! I mean, he wrote over a span of nearly thirty years -- I dare say your style of singing (& songwriting?) has changed over time.

And yes, I'd say that the production style makes up about 60% of the total experience of any play. My high school English teacher made this analogy:

Reading a play is like looking over a set of blueprints.
Seeing a play is like walking through a house.

and I'd add: And the director is like the decorator of that house.

Decorating the house with heavy Victorian Oak with marroon and gold velvet will give you a very different feel than if you did the exact same house with Danish Modern.

Sounds to me like this director is a little wacko (every Titania and Bottom scene that I've seen never went past the sultry flirtatious stage, and the fairies had always been very alert and on their toes)... from your description, sounds to me like the director was in love with his own cleverness at pushing the envelope.