For once I'm on the middle ground. It does make some sense to say that you can't make bloodbath games about shooting up schools in a school because, as the kid that pulled that kind of crap before, I know that the school system as a result of shootings and such is kind of cornered into the better safe than sorry viewpoint where they have to make a big show of freaking out so that nobody can ever say "How did you not see the signs? Why did you let this happen? I'm going to sue the pants off the school system."
On the other hand, there should be reasonableness in any restrictions imposed. Yes, you shouldn't make bloodbaths, but a little violence in the plot or the gameplay can make the game better without going overboard. Unfortunately, what oftentimes happens is that some idiot ruins things early down the line thwarting the "We won't freak out if you don't go overboard" approach.