I am okay with decapitations so long as they are few and far between. I know that in Oblivion you would see burnt bodies and heads on pikes all the time not to mention the ripped open rib cage of a corpse. I think it fits the series so long as it isn't Gears of War bloody or Fallout 3's bloody mess perk.
It's kind of ironic that the bethesda forum censors dialogue strait from a bethesda game. I guess I will have to wait until November to see what my heart or other organ desires.
Some of it sounds like it could be in a book - which would come under on screen text. In-game books have been more explicit then actual gameplay in Morrowind and Oblivion in my opinion.