The government doesn't acknowledge that the services are actually blocked in China. If you ask your ISP why Facebook isn't available, they'll tell you "it must be Facebook's fault." The government hasn't declared them illegal, so understanding how to make them "legal" is quite impossible.
The government selectively cracksdown on Internet companies when it wants to make a point, and turns blind eyes on others, arbitrarily, porn is quite common in the China market and very available...and even necessary for these companies to make a profit. They just choose one to slap on the wrists occasionally to make sure they don't get out of control.
In contrast, you'll find less porn on Facebook, G+, and YouTube then you will on RenRen, YouKu, Sina, and so on. Heck, WeChat is well known as the hookup app (so my wife won't let me go near it). But then this is similar to how prostitution is ubiquitous in the PRC vs. how it is very much underground in the US.
How would a legalistic American company operate in such an environment? China is not yet very much governed by rule of (impartial, fairly applied) law, so it is just impossible to do much without being able to live in the grayness (as most Chinese internet companies are able to do!).