you're rightFam... We're from different eras. There was no rating system back in the late 70's/early-mid 80's because there was no reason to have it. Aside from Custer's Revenge and one more game who's name I can't quite remember for the 2600 (and both were only available from porn shops), there really wasn't anything out there "adult oriented" or questionable for consoles.
The first game I can remember that raised eyebrows was Leisure Suit Larry, and that was a PC game that came out when I was 15 or 16.
Even in the next wave of gaming (NES, Master System, XE GS) there wasn't anything like that. Actually, the worst thing I can remember for consoles was Night Trap for the Sega CD, and I was 20 by the time that shit came out and it's tame as fuck by today's standards; you can see worse shit on an episode of Family Guy.
i keep forgetting the age gap
i agree with some or your points tho