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Some of it gets silly after while, but it's understandable. Nintendo entered the market right after the big crash, and they managed to be successful by directly marketing the NES to kids. NoA was just taking a somewhat strongly conservative business view and decided not to offend too many parents out there (let's face it, there's a lot of really stupid parents out there with absolutely no reasoning ability whatsoever). The concerns over things like game violence was already around during the NES days. And having even mildly suggestive content in games that were being marketed to kids could cause a lot of silly wrath.
Unfortunately for Nintendo, this ended up giving them a kiddie reputation among gamers they still haven't completely shaken. A reputation that was probably strengthened by Sega and Sony marketing their consoles to teens and young adults.
On the upside, it helped to prevent crap like this:
They only scratched the surface of this stuff too. They didn't mention how the opium smugglers in the original Final Fantasy Legend 2 became banana smugglers in the US version.
I didn't know the puff-puff when all the way back to the original DQ, but there is different message you get at the inn if you stay there after rescuing the Princess but before returning to the castle, with the implications that something happened during the night. And THAT is why thou must love her.
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