I've been a Fire Emblem fan since 4.
I wanted it.
No, times have gotten wonky because every little thing is getting the Streisand Effect. The reason no one knew about Nowi was because no one knew, and by the time they did, they didn't care.
If the swimsuit was never removed in Xenoblade X, a few people would see it, be mildly disgusted, and that would be it because no one would know about it otherwise.
Almost every single controversy in recent times has involved censorship in some way, which has driven people with no interest in the product (on both sides) to the discussion, which just makes it grow and grow until it explodes into the nonsense that we have now.
If Nintendo said little about the mode and did not censor it, there would be very little if any controversy.