This is bollocks. A Band Wagon at it's worst. For those who don't know, Grand Theft Auto: San Andreas is being banned for shipping with code included that shows a sex scene. This removed from the game but the code was still in the program. A modder managed to find and unlock it.
A patch to unlock the blurring of nudity THAT IS PART OF THE ORIGINAL CODE for the good wholesome fun that is The Sims and The Sims 2 has been available for bleeding ages! You don't see the major stores in America pulling that from their shelves now DO you? It's a "teen" rated title in case you were wondering...
I get the feeling that people here in the UK generally see it for exactly what it is.
Anyway, seeing poorly rendered, pixelated, fully clothed computer characters dry humping really honestly makes me want to climb the nearest tall building and shoot people. AND COVER THE LEGS ON THAT TABLE WHILE YOUR AT IT OR I MAY GET URGES. FILTH I tell you!
Actually, a particularly cynical part of me thinks it was shipped like that to cause exactly this kind of controversy. Now, twice as many people have heard of GTA: San Andreas. A marketing master stroke.