The problem as I see it is that we've essentially come full circle to a sort of
Haye's Code enforced externally by interest groups instead of by a group of Catholics controlling the movie industry. Essentially if a work doesn't comply angry people on the internet will try their hardest to "cancel" the work.
Who decides what is and isn't acceptable to portray in media? Especially on a global stage. If Australia decides something is unacceptable, such as positive portrayals of illicit drug use -- should the entire world follow suit? Who decides what messages are acceptable in media? Is it the group who can whip up the loudest social media campaign? You have your set of beliefs. I have my set of beliefs. Some are personal. Some are derived from where we live. Local law and customs we never really thought about. Where these differ, whose wins out? We all like to think that our views on moral/ethical/social/political topics are the correct ones. It's why we hold them.
Consider the Haye's Code. Easily the most infamous example of art conforming to a mandated moral standard. From the perspective of the Catholics behind the Haye's Code, the things it forbade and the things it placed heavy restrictions upon were completely reasonable. Any film that violated the code was in the wrong. They were protecting vulnerable groups from attack, vulnerable minds from corruption. They were upholding the moral standards of their time, which included some eyebrow raising stuff, if you look through the list.
People have every right to criticize works that they are offended by or that they feel spread harmful messages. Nothing wrong with that. But there have been many books banned in the past. Many films restricted. Once upon a time, conventional liberal thought was that book banning and film restriction was wrong. Defending the right of offensive things to exist, even if you were personally critical of the work, was the default liberal position. This has slowly but surely changed, I think.
Martin Scorsese's The Last Temptation of Christ was viewed as a deeply offensive film when it was released. It was banned in several countries. Detractors viewed it as an attack on their religion, on their messiah, and as a corrupting moral influence on vulnerable people.
We also have works such as Salman Rushdie's The Satanic Verses. That book offended a great many people. It blasphemed their religion, or so they felt. It was an attack on an integral part of themselves. Millions of people wanted Rushdie to die for what he wrote.
We come back to the problem of videogames as being overtly mass market to the point of being insipid. If you're religious and you find The Last of Temptation of Christ offensive, you don't have to watch it. There are endless movies. You don't have to watch them all. You don't have to watch movies that have messages that (you feel) attack you or the things you believe. That's the conclusion a lot of people came to. That sometimes works of art are offensive to certain people. But we live with that. Games are different. There's this impression that games are for everyone. That "everyone" should be able to play a game without encountering content that offends them. If the content does actively offend them, it should be corrected. This is not necessarily viable because society is a melting people of people with contradictory views. You can cover your bases by avoiding easy offensive pitfalls. But sooner or later you tread on toes once you start dealing with meaty political topics.
When Devotion deeply offended people in China, and was subsequently scrubbed from the entire Chinese internet, and then vanished from Steam, a lot of people outside China didn't care. When it comes to art offending people with its messages or themes, people's care generally only really extends as far as the interest groups they care about. (Or just themselves.) Chinese nationalists don't rank among most people's list of "offended people I give a shit about". Their offense is still genuine, though.