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It is worth noting as altword has said, Paypal's agreement has banned pornography for years. ALL pornography, not just these "touchpoint"pornography categories.
It's hard for me to blame paypal for finally enforcing their TOS.. and Smashwords SHOULD have known that eventually paypal was going to do this.. after all, smashwords READ the TOS for years where paypal said that porn was banned.
I think Smashwords has been, in the eyes of paypal and others, breaking the rules of the TOS without incident for years. Those are years they could have been using to search for providers that didn't ban porn.
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