I don't read femslash for the sex. That's not to say I don't read smut, because I quite enjoy smut, but I didn't get into femslash because the stories dwelt on sexual escapades. I read femslash for the femslash - the attraction, the love, the emotions. I'm really quite fond of "gen" femslash, though that's not at all a good term, really. "G" or "PG" perhaps?

And it's not because I'm uncomfortable with the sex. It's because I prefer the people. Not everybody wants to write sex in slash, and not everybody wants to read it. It's just the vocal majority that puts it out there, and makes you feel dumb for not wanting it the way they do.

As far as terms and lines and boundries and blurring - I think it's too subjective for its own good. But, for me:

Gen - No explicit pairings, just good old fashioned stories.
Shippy - A story that doesn't necessarily become smut, but focuses on a relationship throughout the plot.
Character Sketch - A look at a character - this can be labeled as Gen, Het or Slash also, depending on how you view the character in question. (I'd say that in not obviously gay characters a slash warning is good for the readers when you've chosen to portray them that way..?)
Slash - Any story where same-gender attraction is discussed.