I hate to say it, but...
While the possibility of government grants to make commercially non-viable games is cool and all, you and I know the censorship won't go away in the blink of an eye.
Music is art. Music is also censored, when put on commercial release.
Television series are art. They are also censored on most stations.
Film is art. In some cases, film is censored or given an X-rating when found to be obscene.
Games for commercial release will still be under the same scrutiny that films, TV series and music are put under for their commercial release. This still doesn't mean that teenagers will be able to go out and buy excessively violent and/or sexual video games without retailers and parents being able to stop them. It still does not mean that if the government finds something to be completely obscene, they can't regulate it into obscurity. They still have every right to do that. It just means that now, for certain, developers cannot be completely stopped from making the game.
And I am 100% fine with that outcome.