The End Is Nigh, For Manhunt 2 Drama Anyhow

After Manhunt 2 was banned in the UK and the ESRB gave it an Adult Only (AO) rating, things looked bleak for the game.  The AO rating is more or less a death knell for a game that plans to release on consoles, as Sony and Nintendo both forbid AO titles to be published for their systems.

We know that as of 2 weeks ago, Rockstar and Take 2 were working on an appeal to the rating, but we were unsure what the basis for their appeal would be.  It now seems clear that the appeal was for a modified game:
“Publisher Take 2 Interactive and developer Rockstar Games last week announced that it had submitted a modified version of Manhunt 2 to the ESRB, who has now rated the title "M" for Mature for ages 17 and older. The new rating is now acceptable by Sony and Nintendo, which paves the way for the game’s upcoming release this fall.”
What do you think about the Manhunt 2 drama?  Is this a serious threat to today’s youth, or overbearing organizations flexing their muscles unnecessarily?