You say that as if Americans were in a position of vast moral superiority when it comes to killing ethnic minorities or committing war crimes.
By the way, America is a socialist country, too. The free market doesn't decide how large our military spending is, or how much to spend on road construction--the government does. That's socialism, not capitalism.
I think this is probably good news for the rest of the world, though. After everybody sees how stupid (and in practicality unenforceable) this is, then similar laws in other countries won't be called for. I mean if you're in Germany, just drive over to Denmark, Poland, Austria or other neighboring country to get a version of the game that isn't gimped. Alternatively, I'm sure there will be unauthorized patches of the game that undo any politically correct castration.
This looks to me to be less about distancing themselves from the past and more about political grandstanding to "think about the children of this country." That's the same thing that politicians everywhere grand stand about, you know?