So yeah usually these discussions end up focusing almost entirely on Japan because of its standout reputation of:
(a) Having a lot of adult video and horny male buyers
- but simultaneously having -
(b) Strict censorship laws requiring genitals to be covered by a "mosaic" pattern.
The simple answer as to "why" the Japanese do that is that it is where their current comfort levels are in their culture. Up until ten years ago, they also required pubic hair to be covered - but they loosened up on that one and now you can show all the pubic hair you want, just no genitals.
I imagine every country has different comfort levels with pornography - it seems that in Holland and Denmark it is very open and everywhere. And, just like alcohol availability, you see people debating whether this is a good thing or a bad thing.
I think the internet has made the arguments much less relevant today than they were twenty years ago. That is because people will use the internet to find what they want to find anyway.
Me? I am a 100%, dyed-in-the-wool, boobhound. I would much rather see big hooters than look at the flat-chested androgynous females who walk the catwalk in fashion shows - whom I am told I am supposed to like more than seeing Milena Velba or Abbi Secraa shake their gorgeous huge gifts of nature. But I suppose that is another talk show for another day.