> Is the word "Taiwan" such a bad word in China that, instead of some reasonable action, it crashes the OS?
From my reading of the article, the intention was not to crash the device, but to hide the Taiwanese flag emoji - and the crash was because the code intended to do that was buggy.
So no - it's not _that_ bad a word.
> Is the Chinese government so upset about Taiwan they're insisting manufacturers hide the flag from the keyboard?
Yes, it seems this is true - and while I've never needed to deal with requests like that from a nation state, it does seem kinda cowardly on Apple's part to agree to that, and it seems quite at odds with the resistance to the FBI getting a screenlock bypass to that iPhone 5 a while back...