I saw the show on Tuesday and felt that the kiss between Carla and Luisa definitely worked as part of what was clearly a fantasy sequence in the Follies number.
As far as Eartha Kitt is concerned, she looked damn good in that corset. The audience was howling (in a positive catcalling way) when she made her entrance in that outfit. True, Eartha isn't "pretty" per se, but she exudes a powerful sexual magnetism. What a body and what a presence! And if men are somewhat intimidated by her, then all the better. That only heightens the whole dominatrix-esque aspect of his childhood fascination with her.
Then from out of the blue, and without any guide, you know what your decision is, which is not to decide...
I chose and my world was shaken, so what? The choice may have been mistaken; the choosing was not. Just keep moving on...
--Sondheim