This particular situation was so ridiculous, I'm glad they realized what fools they were making of themselves.
I mean, if the image had been hurting anyone in any way at all, I would have a different opinion. But as we have heard, the girl in question has stated herself that she's fine with it, was fine with it back then, and her parents were fine with it back then. Plus the fact that it's been available since the 1970s, in my opinion, means that it is actually a culturally significant work of art. Etc.
Censorship is such an old issue, you would think people would realize when these policing agencies are crossing the line.