I can't help but be reminded of the Futurama episode where Fry falls for a mermaid. At the end, running away screaming, "why couldn't she be the kind with the fish part on top and the lady part on the bottom!"
Technically, Wakasagi could be right in both senses of the Mermaid Dilemma. She could be talking about eggs laid out of a cloaca in her tail, or she could be talking about getting a womb in her pelvis blasted. You'd be surprised at the number of theories on mermaids in the Monster Girl Encyclopedia community.