What is acceptable in one country may not be acceptable in another. That goes for just about any entertainment medium, and anime is definitely included. For example, here in the states it's more common to see violence on primetime TV, but sex is more of a taboo topic. Over in Europe, it's more of the reverse. Even here in the states we see more strict guidelines when it comes to curse words. Anime localizations have to take all of this into account.
That's where the topic of censorship comes into play. It doesn't really have to do with a localization house wanting to make cuts. There are times when they absolutely have to make edits in order to localize a show or movie. There are things that go by without any issue in Japan, but here in the states you could land yourself in some major legal trouble.
There have been numerous occasions where an anime was edited for release in North America. Cuts that took out sexual situations are definitely more prevalent than those of violence or other content, but it does depend on the age group that is seeing a show. Programs like Naruto are edited here as well, and some of the content taken out seems to make little to no sense when compared to other like-minded programming that airs here.
What is your stance on anime censorship? Is it a necessary evil, or would you rather localization houses just kept the show in Japan? Do edits ruin the spirit and message of a show?