I agree with her on restricting sale of M and Adults Only games. If only Australia got an 18+ rating for videogames...anyway, while it is a parent's responsibility to ensure that their kids aren't watching or playing or listening to things that they feel is inapporpriate for them, imposing punishment for those that breach the M and AO would prevent those that go behind their parent's back from getting a copy of an unsuitable game.
As for the 'Hot Coffee' GTA: SA patch...Well, I've seen some pics of it over at
http://iftheywannafinditthey'llfinditthanks.com (Warning: This article has links to sexually explicit, in a polygonal way, images) and when I saw them I burst out laughing. It just looked ridiculous. Rockstar claim, though, that the explicit content was created by hackers and is not in the original game anywhere. The person who found this claims that all they did was unlock this area of the game.