Suppose I should explain myself. Damn you escapist, posting during time where I can't actually reply properly!
First and foremost, let me explain what I always saw as the Halo/GoW controversy. Maybe halo was a personal one, but Halo was the game that made the community parent associate gaming with the devil. It wasn't Goldeneye that did it, it was Halo. Why this is, I have no idea, but the fact of the matter is, Halo was considered the violent...est of the violent when it came out.
GoW, from what I remember, was surrounded by a giant cloud of shit when it came out because people were disgusted by it. The chainsaw executions and the giant amounts of gore were something unseen by a lot of people, and it got a lot of heat for it. Again, maybe that was a localized event. But I remember without a doubt in my mind that both of these games put video games as completely off limits to a lot of people.
Second, in regards to censorship: I flat out disagree that a line shouldn't be drawn. The first time I played Dead Space 2, I was completely and totally disturbed by the child and infant necromorphs. Not because they were scary, but because of the social taboo that was being broken. It STILL feels wrong to me, as it should. Not to lecture, but if you're going to kill an adult... fine. I can't defend the ethics or morality of it by any case, but death and war have always existed in our culture. When your literally working a way through a day-care slaughtering the inhabitants, however, thats fucking wrong.
Third, about 'playing the terrorist...' you totally don't make your way through an airport slaughtering hundreds of security guards, cops and civillians in MW2. That totally isn't wrong or problematic in any way. Just saying. It's already been done. Why MOH got so much flak for it is beyond me. Maybe it's because they were American troops that you were killing. If it had been RUSSIANS (see above) it would've been fine(?) Further to that, it's not the holocaust but it sure as hell looks like it. All you're missing is the swastikas and maybe some discrimination. Hell, you have to dig out of a mass grave in Far Cry 3 in first person. If that's not breaking that barrier, I don't know what is.
There really isn't a line left, is my point grand point I think. Or if it is, there isn't much left behind it. What else is left to see in video games besides something that belongs on the adult section in Newgrounds?