There were a whole lot of a sexual undercurrent in the game. Aside from the kiss, one female character writes a love letter to another one. I imagine it got banned because of the sexual undercurrent though, since the characters were all children.
I don't much agree with bans. Let folks choose if they do or do not want to play a game or watch a movie of their own accord. No reason to take the choice away from them because of some questionable content.
Rule of Rose has a terrific storyline, if you can get past the pretty crappy combat.

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