Even in this unpopular poll on this free-minded forum, [four] people already voted for ostracism and two for government intervention (i.e. jail).
I'm not sure I'd hold ostracism against people. The whole "dead" aspect gives me the willies and if someone I knew were engaging in sex with dead animals (defined by me as sexual activity with a carcass for the purpose of sexual pleasure) I'd be a bit reluctant to spend time with them. Perhaps not full social pariah to the "shoot for simple tresspass" level of "no services rendered" I'd offer someone who harmed my wife intentionally, but "We should go out and have beers" would probably be off the table.
I'm a bit too logical to assume "incidental" use of dead animals for sexual purposes (such as lamb condoms) would freak me out, but then, I'm not sure why my friend would feel the need to divulge the kind of condoms he uses unless there's the unintentional implication of "I'm allergic to latex". Then again, there are non-animal non-latex condoms, so there's no excuse for telling me that either.
Perhaps those people can tell me where they draw the line between lamb condoms, ivory dildos, hot dogs, supermarket meats, and/or roadkill.
A lot of people are irrational. Many people who eat meat are mortified of the idea of a slaughterhouse tour. I know that beer is sugar water infused hop tea with yeast farts and shits, and I love beer. My co-worker is mortified by the process of fermentation once she recognized what it really is. The hot dogs kind of give me the creeps, not because they're dead animals but because they're low-quality dead animals. High quality sausages are perhaps a different story. Not sure what the "supermarket meats" entails, I think it's too vague to really give a solid opinion on. The roadkill thing, again, for being and (i'm assuming) unprocessed puts it in that "low-quality" meats section.