I think the issue would be more that people don't accept this is censorship - the surface level here looks like companies negotiating who they will and won't do business with which is actually encouraged. If companies have a moral objection to something then they don't have to be involved. In theory stopping a flow of money takes a lot more than some crazy from Australia getting upset.

The real censorship here is that a system has been constructed where payments must be funnelled through a small number of blessed companies and it has been set up that way to ... promote censorship. Authoritarianism in general, really. If it wasn't for anticompetitive regulations one of these game devs could just branch into banking. We've actually seen that dynamic play out in most of our lifetimes - in the early phase of crypto it was mtgox.com [0] that triggered the transition from cool nerd curio in the internet backwaters to a billion dollar market. So we know the pipeline there would work fine in the absence of KYC regulation.

[0] Magic The Gathering Online eXchange

and those companies aren't heavily regulated.

In Europe they regulated exchange fees down to something like 0.3%. They just said the fees shall be low and lo, they were low.

They could also easily regulate that credit card networks can't block obscene content.