You know, Take2 just issued some reactions, they're over at Kotaku if you want to see them. If you ask me, if I were them, I wouldn't rework the content, nor would I appeal the rating, or at least, I wouldn't waste man power on appealing the rating. Instead, I would sell the game through online retail channels. I'd start a heavy online campaign for advertisement, and I'd offer free shipping for the game, if it's bought at the Rock*/T2 website. That way, people who want to buy it can get it for the same price they can in any retail store, and since they get full profits, they'll be able to absorb the cost of shipping.
Some AO games are still considered serious games, and this is one of them. Is A Clockwork Orange not a serious movie? To show that T2 considers the game serious, they need to forget about any retailers that refuse to sell their product. They should refuse selling copies of any of their titles to major retailers until a few months after GTA IV has been out, and offer that through online retailers, too. If the marketplace wants to refuse selling one serious game from a specific publisher, I think it's well within the publisher's right to refuse all their games to that merchant. If this were some sex game, I'd understand, but it isn't. And after all, these places sold God of War, GTA III, and BMX XXX, so obviously, they've had games with graphic content and gratuitous sex before.
I don't mind the game receiving an AO rating, I think it probably deserves it. However, I still believe that most video games are a work of art, and therefore protected by freedom of speech in at least the U.S. Take2 needs to address this issue now, and hit it hard. They aren't trying to get their game in the hands of children, nor even 17-year olds. They are trying to allow their game to reach the hands of those who appreciate several forms of art, so to do so, they would appreciate retail channel help.