Bad idea if you want to be selling stuff to Americans. And by coincidence American auditory in adult niche is more than 50%. No it will just fine, just a little slower than US hosting companies. Bad for video, bad for flash animation. But if you don't need one for porn perhaps you would find these guys interesting:
http://www.hetzner.de/en/hosting/pro...produktmatrix/
Be sure not to host any porn on German servers, due to a very strict laws regarding online pornography there.