I don’t get it either. I think there is a reasonable expectation to try to catch these things but at the end of the day it’s figuring out some form of probabilistic outcome.

What really surprises me about this is that it sounds like they're not even trying to classify and censor generated images post-generation?

Nothing is perfect, but there are tiny classifier models that can at least mark things containing nudity and gore. That would be the bare-minimum I would expect for trying to put guardrails around an image generator.