Zanderat: Am I nuts? But it appears that all the sexual debauched billboards have been replaced by non-sexual ones? Can anyone else confirm or deny?
I am running 1.1 and based on your post and an experience I had yesterday trying to take photos in which a billboard was present and changed its contents just in the photo, I wondered if they might have removed lude content from photo mode.
I just spent an hour running all around Japantown exploring and taking photos. In particular every single lude/crude/nude billboard or display sign etc. I found I took a photo with photo mode and the graphic was both present in photo mode and in the resulting screenshot, including the one that shows a naked woman's breasts, arse and other stuff.
I think it is safe to say that they have not put any censorship of lude material into patch 1.1, and that if anyone is encountering missing lude content in photos if anything it is more likely to be some oddball bug in the game than anything.
Don't take my word for it though, go to multiple locations around the city and photograph every lude billboard/ad etc. that you find and see for yourself. If you encounter one that can't be photographed, it just find the same ad somewhere else and it probably can be photographed. It might be worth reporting any inconsistencies with this to the developers though.
I took about 40 photos just to make sure that it was in fact working as expected so I think it is safe to say that there is no censorship going on, and just people jumping to incorrect conclusions without investigating it deeply enough. :)
Never attribute to censorship which can be explained by bad programming.