Moral of the story:
Don't mess with anime tits

Tell me, who gives a shit about the mainstream press these days? They screech at literally everything that isn't either paying them or exactly aligning with their political beliefs. Besides, Valve said they will still remove things that are outright illegal.

Also, who gets to define what "sensible regulation" is? Because humans are flawed, and if that system is implemented, it's very likely the guy(s) in charge of that will go drunk with power and start banning people and things they don't like (case-in-point: Killing Floor devs)

And even if they keep it sensible, it will not stop people from screeching about censorship, and those accusations tend to stir up a lot more trouble than "This platform is TOO free, and parasites are exploiting that!"