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I feel like there must be some scandalous sex secret about him, there always is with guest stars. If it turns out Dan's book is right, Nate IS secretly a sleeper with men and he's totally banging Louis I will DIE LAUGHING!!
This means in the Gossip Girl world of loose values and a tendency to forget who they are and are not related to as the plot requires they're not really relatives. The Chenny and Derena showed us that the show doesn't really care much about things like that, so in that context we imagine the characters wouldn't really mind. Lily regularly forgets she adopted Chuck anyway, plus you can easily ret-con it to say that she did it just for business reasons and unraveled it behind the scenes at some point. If Serena can get un-married, un-kill a guy, un-do anything scandalous at all in Santorini, and un-be all over the tabloids for breaking up a prominent New York politician's marriage and moving into the guest house then Chuck and Serena can sure as hell get un-siblinged for effect.
If at least he was like the last royal and having sex with Nate's cougar he'd be more fun.