To be fair, God of War actually sort of got away with it because it was actually in tone with the style of the game. It wasn't plastered on (or in any modern context at all), it was mostly for atmo. It was on the border of being "art".
The reason Modern Warfare 2 didn't get away with that is because the level itself was crap to play, and it really offered nothing to the plot. So it felt tacked on (just like Hot Coffee did).
Or it could be the fact that Sony managed to take things WAY too far with their topless women serving goat entrails promotion...

Which was the reason rockstar dumped it from the game in the first place

...wait...what?? :D ...

You want to know the new thing in videogames? Nipples. God of War has nipples, The Saboteur has nipples, Dante's Inferno has nipples, Heavy Rain has nipples...
It's like when the first studio got away with a PG-13 when they used "shit" multiple times. Now everyone wants to use "shit" multiple times! Same thing goes with displaying a male's genitals for longer and longer periods of time in comedy movies. It's like a game of chicken; how long can YOUR movie go before it gets rated NC-17?

Well, I am inclined to think that one was intentionally "hidden", just because Rockstar was no longer "edgey". But whatever
Either way though, the thing that most people seem to not realize is that games can get away with quite a bit.
The only reason Fahrenheit really got censored is because of the later graphic sex scene (two bodies doing the horizontal mambo). If it had just been the minigame, it probably would have gotten by (it was almost exactly the same thing as the GoW sex-minigame). And it didn't help that the publishers decided to put the girls in Playboy.
Same with the infamous "No Russian". If IW had actually set things up for that and given it meaning, I doubt anyone would really have come down on it. But instead, they just tacked it on and made it a blatant attempt for "edginess".

Crap! Stop trying to summon Langdell!!
Whatever happened to that EA-filed lawsuit on him anyway?

Most political rants in the US about games are about violence. I'm not sure where you're getting your misinformation. The subject of sex may come up more frequently if the industry continues to handle it with all the grace and maturity of an adolescent deciding to use all the curse words he knows at the family reunion, but right now it doesn't come up much. You might have a case if you directed your comment at the ratings board.

yeah, the inquisition will take 'it's almost art' into consideration.

Clearly they do, considering that GoW didn't get an AO rating or cut in the slightest (that we know of).
Let's take a look at television, for example. On the hit TV show NCIS, the end of one season involved Special Agent Caitlin Todd getting shot. In the head. In an incredibly gruesome and horrific scene. But the network and censors didn't censor it, and you even get to see the impact and the bloodspray/skull fragments as her lifeless body collapses.
Yet countless other shows have to cut away or stick to torso shots. Why? Context.
THAT is what it all boils down to. The context of the thing.
Is it true that boobies tend to get censored more than gore in America? Yup. Is it because we are prudes? Almost definitely. But that is more a matter of the context. In European countries, it might be considered artistic to show explicit sex or nudity. Why? Because it happens all the time. Here, not so much. So if it is being shown, there is a good chance that the context emphasizes that, rather than treating it as part of the scene. Does it suck? Yup, but that is culture.

My information mostly comes from video game oriented blogs such as Kotaku, RPS etc.
I know there are some who are against violence in video games, jack thompson comes to mind, but I read much more complaints about sex in games than I do about violence in games. The craze about the hot coffee mod for example was irrationally high for instance.
Either way, I believe that my point still stands firmly, regardless of what you say.
I've seen adult themes involving suicide, murder and even torture in T-rated things, but I have never come across a single nipple in any game rated below M.
Sure it is a matter of opinion and I agree that opinions vary. My opinion on it is that I would rather have my kid see tits over torture, but perhaps that is just me.

I haven't tried the demo, and granted; this might be another one of those games that end up being somewhat lacklustre, but ...
... I've got to have it for the controversy and uproar it's created alone.
I'm kind of hoping they've hidden a Monty Python spanish inquisition easter egg in there somewhere, too. I know that's what I'd do if I was working as a developer on that game.

If you happen to be living an epic tale told in a manner evoking Greek Mythology (albeit, romanticized and modernized Greek Mythology), then go for it.
Otherwise, you could have some problems :p

The aggressive, wannabe-offensive marketing for this game has already killed my interest.
They are trying far too hard at this "viral" thing.

Wha? Graphic? Were we playing the same game? What I saw was a character driven emotionally valid, story progressing love scene (where you saw sideboob at MOST) that had a meaningful impact on the closing moments of the game. Kind of the exact opposite of "No Russian"
Now if you want digital nudity, you can't go by GTA4: The Lost & Damned

Well nobody would expect the spanish inquisition. I understand that surprise is one of their weapons