I'm sorry but someone needs to whap Japan upside the head. This is a nation that is internationally famed for being the home of earth's most bizzare perverts. Something new, and eye bleedingly shocking comes out of Japan constantly. They produce rape simulators for personal entertainment, and shocking porno movies of every variety of animation and live action availible. Even the comic books they release for kids oftentimes include a decent amount of sexual material...
This is the nation that suddenly cares about a statue with it's wang hanging out? I mean seriously... I understand the whole "outward face" concept but Japan needs to get some grasp of it's own identity and who it is. To me it sounds like some of this "morality policing" seems to be vague efforts to telling the world they really aren't that bizzare or perverted... when really... yeah, their popular culture kind of is, no matter what kind of face they try and put on it.
I wouldn't be surprised if someone in Japan masterminded this whole thing as a stunt, from the accusations, outward, looking at the outrage "David" has caused in the western world from prudes in the past, and decided to make it seem like the same thing happening there, to "prove" it's the same.
I know a lot of people probably won't like what I'm saying, but given the amount of time I've spent on the Internet alone going "WTF Japan" to the point where I constantly think I've seen everything they could do, only to be proven wrong a month or so later (tops), I just can't take them complaining about "David" seriously. That's obscene, but we've got games like "Rapelay" being defended, with Japan mostly just resigning not to release them to the US. Articles about people in Japan marrying dating sim characters IRL (I think that made it onto The Escapist at one point), and defenses of "Dead Or Alive" on cultural merits (personally I think the game is fine, but I'm honest about being a perv at least)...
If I'd have to guess the actual Japanese problem with David would be the guy being too small... put a giant Urotsukidoji tentecle between his legs, and have it wave around through the crowd with animatronics, periodically shooting cooling liquid out over the passing crowds to help deal with the heat on hot days (or whatever) and maybe they would react better.... perhaps something was lost in translation of the article. >
I remember seeing videos of Bayonetta adds where people were encoiraged to remove pieces of her clothing a square of a time as they passed by it in a crowd... and videos of someone putting out a soft breast sculpture for another ad for people to cuddle and put their face in as they walked by (that one made it to Youtube I believe).