Not related to "offensive content", but there are some new regulations coming all the time. Last year they made way more strict the "unusual activity" kind of policies. Meaning that if you happen to get unusually lot of money one month, they may freeze the account just for that, and hold money for month or so until you prove what money is for and that goods are shipped. I was wondering what would label do, if they have set successful pre-order, but all this money is frozen on paypal account until they can prove each order to be shipped? hah..
Paypal will report your income to tax authorities as well, so anyone doing little hobby on the side, may get call or letter urging to explain what is all these payments they are getting. EU is becoming more and more bureaucratic in everything. If it used to be annoying, it is getting even more annoying year after year.
Of course non-EU countries can do it nicely too. UK has been showing curious development when its not just payments being monitored or services monitoring "offensive" items, but police showing up to customers door to ask about things after customs opened letter with "dubious music release".