That's where the porn lives.
I am from Virginia. Not only is this news to me, but it's news directly contradictory to my personal experience.
You could say the same about the vast majority of videos being released on any format. OTOH, I recently bought THE RED SHOES on Blu-ray as a gift for a friend. Hardly a Michael Bay film. As always, you have to look a bit harder to find the good stuff, because the studios want you to buy whatever dogshit they just wasted three hundred million bucks on, and the retailers want to sell that dogshit to you.
The MPAA doesn't refuse to rate films. However, sometimes companies who aren't MPAA signatories will refuse to [i]submit[/i] films to be rated which would never get anything less restrictive than an NC-17 rating due to their content. No rating at all is, illogically and unfairly, less of a commercial liability than an NC-17, and unlike getting an NC-17, it doesn't cost money to not get rated.
Keep digging that hole.