Rather than be a nanny to it's users, Apple should implement a rating system for it's app store like it has for iTunes.
Then include a disclaimer in the TOS agreement and allow users/parents to filter/restrict content as they see fit.
Then if anyone complains about store content, Apple could fall back upon the agreement the user agreed to and say they can and should have filtered/restricted the content if they though it was inappropriate.
Apple, you're missing out on a TON of revenue here... and as A SHAREHOLDER that makes me quite unhappy.