I don't see how PayPal's "jurisdiction" extends beyond that of the store where merchandise is sold - where a PayPal transaction would be involved.  Aren't the galleries and forum separate areas from the store?  I mean, enforce whatever rule you'd like to - it's your site and it's privately owned and operated - but why cite PayPal as a fault?

Don't get me wrong, if you are going for a PG-13 audience then by all means - that's smurfy!  I prefer my own site to be family friendly.  If I felt the need to display lots of nudes and such, I'd open a separate site for that.  Maybe Rendo should consider such an idea.

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