This is classic Japan "don't harm public morals" grand standing. Japanese culture puts on a good mask to show everyone else how good and clean they are, but go take a look at their fan mangas and old video games and that mask doesn't just come off, it flings itself off like a pinball from the plunger runway.
I like Japan, but they really gotta get a grip on some stuff. Particularly this "public morals" facade, their awful defamation laws, their work culture, and their insistence on allowing Japanese businesses to attempt to apply Japanese laws in jurisdictions and countries that the laws do not and can not apply.
their insistence on allowing Japanese businesses to attempt to apply Japanese laws in jurisdictions and countries that the laws do not and can not apply
How is this the Japanese government's responsibility? They aren't enforcing those laws in countries they don't have jurisdiction, are they? Or do you mean the average person in Japan?
You know what's great about modding? You can decide for yourself what you want to use and what you don't want to use. You customize the game to your personal liking.