They shouldn't walk any middle ground. Have bare briasts in the tutorial like God of War and we won't have any confusion.
Whenever a new Elder Scrolls game comes out post Daggerfall, nudity gets put on the table for discussion at Bethesda it seems. It got to the point where it was applied in practice to see how it looked in Oblivion, hence the locked files. And they ultimately decided against it.
The question has been asked for Skyrim, though we could very well get a no comment answer in these next few weeks.
You do know how market works, right? If game will be excellent, praised by critics, a lot of people like this game and it sells well, then retailers WILL stock it, and console developers WILL accept this game.
My point is that having A rating doesn't automatically make game worse, on the contrary, if done right it can make game even better.
(I'm not talking about sixyBeach and similar crap, that makes sixual relationship their main theme)
Except that if it's AO many US retailers won't carry it, Walmart, Target, and I believe Gamestop will not carry AO games, and those three are huge, so that's a problem if you want to sell the game.
It's a moot point because they've never done anything in these games to warrant an AO, even Daggerfall didn't cross that line, at least in the states.