Originally Posted by Swampert Guy
Japaneses were allies of the Germans in the World War II, so I thought that censuring German words was a controversy.
That doesn't matter. Iirc Japan was captured and then forced to be an ally, or something like that. I need to touch up on my history, but anywho ... Any mention of Hitler or the Nazis is banned in some countries, too, so you have to keep that in mind. I'm not sure if Japan is one of them, but I think Germany itself is because of the horrific actions that Hitler did while he was in power.
And just like Obliveon said, little kids do still play Pokemon. Even if they'll hear all that stuff when they grow up, I think a lot of parents complained to Nintendo and asked why they allowed profanity and a variety of names for genitalia to go through and demanded something be done about it. If you look at it from their perspective, they just want their kids to still be innocent before they hit the teenage years and are exposed to such words (though arguably, some are WAY too overprotective or hypocritical).
As for "homo" being censored, well, that's a deep controversial issue that I think Nintendo just wanted to avoid.