Well the hard-lined hobbyist in me can feel the hairs on my neck prickle at the thought of extreme retouching that would result in a perceived bait and switch and perhaps elicit cries for truth in advertising, however that may be too far of an extreme for sanity sake.
In some instances, retouching is beneficial such as tattoo removal for identity protection, although skilled planning of photo poses with props and costumes can achieve this, but I agree with others, if digital manipulation occurs, it should be noted and explained. I don't generally mind tattoos, unless of course the mood strikes me to have the innocent girl-next-door experience.
That does raise another perspective. This is an industry/activity based on fantasy. Some softening and smoothing helps perpetuate the fantasy aspect. Provided it is not completely misleading, I think some "digital make-up" may enhance the overall experience, in some cases. Of course, I am also kinda weird in that sometimes I like my more regular providers to dress up as nurses, librarians, real estate agents etc.
Some creativity with photo galleries are nice especially for themes. For instance, I have never met her, but that one gal Reese that has the look of a
Coca Cola Pin-Up Girl, and those photos make me long for a chance to actually meet her. Most of her reviews indicate she is indeed the "real thing." Does it matter that her photos were framed by some graphics software to look like Coke postcards? I don't think so.