I'll toss some thoughts here. So don't read em if you are not ready to stomach it nor have the thick skin to handle some raw Internet.
You have been warned.
First. @Lemon-Sama I know my Tera. No, they are NOT 1000 years old. Lore states they live fairly human life spans. BUT, they are not born like other races. They are created "as is" by one of the goddesses, so you won't know if you speak with a 3 months old elin or an 80 year old one. Still yeah, LOTS of elin players in that game.
Now here comes the salsa. For those who can't stand short or child like characters in video games, avoid these games. Tera, Blade and Soul, Lineage 2, Aion, Champions Online, DC Universe, Soul Worker, Elsword, Black Desert, Dragon Nest, and while not online anymore, PSO1, PS Portable 1 and 2, among others that are not mmos. The list is actually quite big actually if we add offline or non mmo games (Arcana Heart and Neptunia series anyone?). And it doesn't stop there. On mobile we have a few too. Dragon Raja, Lineage 2 revolution, Toram Online, Alchemia Story, Rise of Nowlin, Talion, and an also pretty long list of games that are readily available for NA players to go to.
Now for the actual topic of this thread. I'm almost 100% sure the censor will never be removed. It's obvious Sega prefers to just let users rage in the contained bubble that is the forums and social media, bat an eye at the whole thing, and keep selling their cash currency.
Why, my assumption is, while I completely disagree, and will always disagree with censors, I also understand that NA views on a bunch of things are very different from JP mindsets. So I suppose Sega, despite being the company that released stuff like the Tonnio/Linna ship not long ago (a stint which ended with a character that looks almost like a toddler getting pregnant), and despite giving us super short characters in the previous action based Phantasy Star games (and in those games as you went down the slider, head and eyes became bigger automatically), may have now looked at the situation and for ONCE, thought to censor the portrayal of player editable child like characters in their video games. Though in this case I assume those chair/pole dances and all those ridiculous, distasteful and actually disgusting vehicle butt up poses for females may also have something to do with it.
As for Loli, the one only original meaning of loli comes from the Lolita novel, which regardless of all the accolades it received for being a well written tragic drama, it's all about a middle aged man who abuses an underage girl. So yeah, loli fashion and all that, while now separated from the root, did come from those dark origins.
EDIT: Oh, and to make something clear before someone labels me a criminal again, I fully understand not every Japanese out there nor every American out there has the same mentality towards these things. Few countries practice "monoculture", and usually those that do, do it because they are dictatorships or something scarily similar.