What a load of goddamn horseshit. Dark Sector was banned due to dismemberment as well. We pay more for everything and then our government has the gall to tell us that we can't even buy it. We could walk down the street together, happily purchasing a copy of Fallout 2 and proceed to kill children, have sex, blow apart a few people, take some drugs, gamble, but - oh no! Dismemberment? Deus Ex is a pretty good game too, "hey JC got a candy bar for me?" *bang bang*. Let's slide into some ultra-conservative hypocrisy. Hey, just like that child porn/art debate that's raging. National outrage that people are presenting a nude youngster as a piece of art. Disgusting, right? That pervert! Wanna go down to the record store and pick up a copy of "Blind Faith" later? "Houses of the Holy" ain't half bad, either.
On a personal level, the immediate effect of this isn't significant. Was I going to buy Fallout 3? Probably not. Was the cut content from GTAIV significant or essential? Not likely. Should I have the option or choice, as an adult, to experience this content? Yes. On the level of being free adult citizen of Australia, this bullshit isn't just significant, it's also very enraging.
Actually, come to think of, it's also very ironic. A game being made by developers who treat their audience like children was banned by a government who treat their citizens like children. Haw haw!