Eh I really can't really see this as all that damning. The japanese were not even buying Senran kagura even when it was uncensored. The games have had like 5-6 installments to enhance and improve the core gameplay mechanics but they still played like a knock off dynasty warriors. There's really not going to be some sort of max exodus from sony either, everything published in the west is either under Bandai Namco, NIS/NISA, Square Enix, and Atlus/Sega and all of them are in the process of putting out games for the PS4 and/or PS5.
DMC5's patch was apparently initiated by Capcom themselves for fear of normie blowback only to later undo the censoring themselves. And I think the lack of Dynasty Warriors boob jiggle was something relating to Koei tecmo fucking up the frame rates for the ports and wasn't anything to do with censorship but people jumped on the band wagon pretty quickly to accuse without thinking.
Honestly this all strikes me as some sort of corporate buffer because their lawyers told them to do it, because the policy only seems to be targeting games that sold poorly overseas and also have no large following.
The policy has been enacted for around 8 months at this point, considering that we've gotten titles like Red Dead 2, Vesperia, Kingdom hearts 3, Sekiro, Disgaea 1 Complete, as well as smaller titles like Labyrinth of Refrain and Metal max Xeno I don't really see the winds changing.
Almost all of these targeted games were of very low quality. Senran Kagura bombed in Japan and the anime did terrible because nothing recent about the franchise was good. Like with all the high quality Ninja and Samurai games that came out recently or are coming out, SK really needs more to the series than just low poly boobs, the series has been essentially stagnant gameplay-wise for years.
It's really hard to get people to really around censorship when the censored games in question are bad. Series like Atelier fall within the same realm of low quality titles and the last 3 games were all terrible including the recent Return to Arland one. Sophie and Firris were at least tolerable but then they made everything too tedious and boring for the next 3 games with no redeeming aspects. These games can't retain their audience. Now granted all the atelier games have not been censored, but even if they were I don't think anyone would really care in the long run. These games need more competent developers than anything else.
And I wouldn't really want people to call the switch "Vita 2.0" as handhelds are viewed as a side event. People who say the switch is the spiritual successor to the Vita probably never owned a Vita much like the people who kept calling the Wii-U the successor to the Dreamcast or Dreamcast 2.0. If Nintendo wants to seriously compete with Sony in the west, then they need to bring back western devs who can appeal to western audiences by making exclusives. The reason why the n64 is viewed so fondly in the west as the last good nintendo system was because of Rare. You may get people to say the gamecube was good but outside of Paper Mario nearly everything was a step down from the n64. Until Nintendo makes a powerhouse system again it really can't compete in the same areas that sony has influence over or has carried. In order for a console to do triple digits you need America to be fully onboard and with the PS5 announcement it looks like Sony is continuing the success that the PS4 had.
At most the censorship policy is slightly concerning but it's nothing major, once the next big release rolls around people won't think twice.