But their response is what gets me. Boo hoo, free speech is dead because you don't want ostencibly-pedophilic jokes associated with your software.
I say if you're committed to an off-color joke or gag, this is a terrible attempt to save face. Just apologize with authenticity and go more subtle. Don't turn it into another *gate or whatever the hell.
Of course, I'm only indifferent because nobody got hurt. A similar but genuinely terrible situation would be the Python Pantyshot debacle...