Personally I see it in a couple of things they could do better about it. Have an option to where in parental controls you can turn it off and actually change that nasty underwear. If the parental lock is on it should at least be counted as clothing and should be able to be changed without taking it off. GTA had an interesting way of handling it in there strip clubs all the stripers cover up their nipbles but all of them were stripped down to really skimpy out fits. Now I am not saying they should turn the game into a pormo I am saying they should make this a little more mature and less Disney. It is 2010 and the public looks at nudity in games in a much different form thanks to comedians who blasted all the critics for getting mad about it.
But anyway how do you seriously think they should handle it?