In reply to Bill.

They'd probably handle that just like the theme review team does. If one of the key reviewers thinks something shouldn't be allowed on those grounds, they just talk to the other key reviewers. Then, it's just a matter of discussing it and thinking about the image that WordPress.org should portray.

For example, a while ago, we had a porn theme submitted. We are not necessarily against a theme made for porn sites (hey, they use WP too). However, having graphic porn images is something we all agreed shouldn't be packaged with the theme or in the screenshot.

While I can't speak for the plugin review team, most "morally offensive" things that theme reviewers have come across have been pretty clear cases of things to not allow. If something isn't as clear-cut, we talk it over. If we can't agree, we just ask higher up the chain of command.