There's apparently a huge furor about mature items in Treasury East, apparently the listings will be filtered out or something and there are petitions on the internet about this.
BTW: admin announcement post.
My brain is fogging up, and so I haven't really taken a position. I'm not sure etsy really makes it clear to people that it's an adult site. On the other hand, treasuries are 'beneath the fold' so to speak, and aren't in people's personal log in areas...
ETA:Etsybitch takes a side. A pet peeve I have is people saying I'm not a prude, but... We're all prudes to someone, and saying I'm not a prude isn't going to convince anyway. I'm a prude, and proud of it. I find things are more exciting when there's something that can shock you.