MarioFanaticXV: Why was there nudity in the game to begin with? And was is it ridiculous that publishers don't want pornographic content in their games? Apple has done a lot of stupid things, but this doesn't seem to be one of them.
Nudity ≠ pornography.
It's silly that the 8-bit body scans of people in completely neutral poses from Papers, Please is considered "too offensive" while billboards and magazines publicly display celebrities in much more provocative poses but are considered OK since they just barely cover female nipples and genitalia of both sexes. That Miley Cyrus "Wrecking Ball" music video is 10x more pornographic than the body scans from Papers, Please... yet it would probably be allowed as a standalone app in the US Apple App Store.
I spent the first 22 years of my life in the USA, and it took me many years living outside the country for me to realize that the USA really does have some strange attitudes and hangups with respect to the human body as compared to the rest of the world.