Err, Jack Thompson has been disbarred:
http://www.mcvuk.com/news/31883/Jack-Thompson-officially-disbarred
Thank goodness for that :)
In regards to the nudity, well what can I say? Some say it's art and we should allow it, some say it's unfitting for children. Which is kind of weird, because most of us are breastfed.
But then again, the context in which this nudity is 'used' is often of a sexual or marketing undertone which makes it somewhat unfit for the young. Personally I believe that nipples - both male and female are nothing that needs to be censored. Heck, go to the beach in most places, and well - you get the picture (pun intended)
I think it's good GOG left it in though. For those that want to, it can be fixed easily. For those with children - it's an assurance that their kids won't see something they won't want them to see.
In all fairness - what we believe is right or wrong in this subject is into our own minds, beliefs and origins. As are the beliefs of others. If you are OK with (your children / yourself) seeing nipples, do so. If not, then don't.
Which is why I understand the fact the censorship is (left) in. So parents can buy this game for their children ;-)