Celestia looked at Lilith and Liam kissing each other. She was a little uncomfortable but she had already thought that she won't stop Liam and will 'overwrite' all the things.
Yes, She Celestia didn't kissed Liam because she wanted to 'overwrite' everything. She will kiss him at last so he can remember her.
It was definitely not because she was shy before and now she understands that if she will remain shy in the future then she can only saw him making out with other women's.
She saw that her husband put his hand on his mother's ass and started groping them. His mother's hand were behind his head.
Celestia gulped her saliva even though she felt a little uncomfortable but at the same time an unknown excitement spread throughout in her body that even she didn't know.
She saw that even though they both were mother and son but they were not shy at all. Even though she and her sister/daughter is standing here.