Something needs to be done about this. One of the best things about Valve is their overall hands-off libertarian approach to games put on Steam so these shitty companies can't have this much influence over art. Unfortunately governments getting involved would probably only make the problem even worse so it's a tricky situation.

I don't know for certain the particular games that might have triggered this change, but I think I saw mentions of incest games somewhere. I would assume that's with legally-aged characters, because otherwise that content would probably not have been available anyway. Regardless, this ruling probably covers a lot of content that's less controversial but still shunned by a lot of people that would like to call themselves 'moral'.

Yeah the problem is that while it may mostly be incest porn and the like getting the ban hammer now, what happens when the people behind these powers decide that say, a game that contains regular sex scenes or nudity like Witcher 3 or Cyberpunk 2077 is not allowed? Or that say LGBT+ content is not allowed? Or that any political content they disagree with is not allowed?

Will never not be amazed at how society decided any slightly revealing sexual imagery is inappropriate but murder and war is fine.

Yes. This was one of the weirdest disconnects with humanity I had when watching the trailer for The Last of Us 2 back when it was revealed. Everyone was freaking out about the lesbian kiss, while I sat there and thought: why is this a murder simulator that explicitly goes in slow motion and close-ups everytime Ellie kills someone in a gory way?

Storefronts don't really apply to near limitless free speech as long as it's the storefront curating and not government overreach.
If the US and other governments put a big crackdown on content on Steam, that seems very unconstitutional. But Steam doesn't have a legal obligation to put any dreck in terms of quality or controversial content no matter what. They allow most things anyway.

Well, that is just part of the argument for allowing free speech in all walks of life, even from viewpoints that you don't like.  Because there may come a time when we have a republican president just as evil as trump, but perhaps younger and more willing to do things against minorities

It's america, europe has always been the opposite

Blame christian moralism.

In Japan?  Where Christians aren't common?  Huh..... very surprising.