If you look at Japanese films there can often be quite a high level of violence in them so I'm not sure how true that theory is. Although I would say that they most certainly have a preference for games with less violence than the American market, fps etc aren't big sellers.
The strictness on the subject of anything sexual is quite interesting, and startlingly bizarre. The whole deal with Janet Jackson at the Superbowl was blown out of all proportion, I still can't work out why anyone would care.
Back on subject, if a game is built on violence for violence's sake then it tends to be a poor game anyway, just basing their sales on media shock and outrage. It was the same with cinema in the seventies, films would have a very violent scene and would gain notoriety. It was a tactic used to generate higher ticket sales. It died down after a while and I'm sure that gaming will do the same as well.
There will always be violent games but the level and context of the violence won't rise until Manhunt 2 is considered the norm or even tame.
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