Lets not push delusional ideas about "protecting rights" or whatever.

I'm saying that's their ideal purpose. Government is also ideally a tool, and should be stopped from becoming too powerful of a gang...we obviously failed on that front this time around. But in an actually representational system, yes, the government should be protecting rights.

As far as censorship -- I think it's reasonable and correct to flag any game that promotes sexual deviancy (whether it's a character or a flag) as MA or equivalent rating. Beyond that parents can take some responsibility.

It should all be on the parents. Any time the government gets involved, shit gets messy. Any rating system should be voluntary, with a nongovernment oversight committee or something. Because, as you said, the government often ends up with too much power, so them getting involved is ripe for abuse, no matter how good the goals sound.