Considering how the moral guardians of today raise a stink over pretty much anything, I don’t blame ‘em for censoring it this time. Girls' underwear of any form is always "naughty."

…and then my point gets shot down to hell because Palutena’s undergarments aren’t censored in Smash 4.

A goddess has a higher authority and standards more than a high-class princess. Which probably explains the reason why Peach's is censored and Palutena's isn't.