Boy that was a long read. Way back when Oblivion released there were nipples on the textures of the women, before release the ESRB said they wouldn't allow it, so they added in the perma-underwear. The original idea was to release the game with nudity. When someone in the modding community figured out they could remove the permagarments the ESRB shut it down pretty quickly, making Bethesda remove the textures altogether. I think, keep in mind this is 6 years ago now, that it was due to the fact that you can strip a body and manipulate it, move it or position it. Something you can't do in God of War, Duke Nukem or Dante's Inferno. They did not want to create any sexual deviants in the way of necrophiliacs. Don't quote me on that though, as it has be quite a long time. The articles on it may still be in archives available somewhere. I think Pete Hines talked on it after the ESRB cracked down on it.