I have literally no idea. If you don't care that's fine, but why would anyone ever be happy about something like this? It's a very slippery slope. One day they might censor something you wanted.
And it is 100% censorship. People that are happy about the specific change don't want to call it that, because the word "censorship" has a much more negative connotation than "localization," but it is censorship.
1) No matter what you say, it is not censorship. By the definition of censorship, it is not censorship. Nintendo are the ones who made the game. They are making a conscious decision to remove their own content in the western release without anyone forcing them to. If the ESRB forced them to remove it, that would be censorship. Nintendo removing their own content isn't.
2) The "slippery slope" argument is a bullshit tactic used for fear-mongering. There is no proof whatsoever that changing some revealing clothing or a weird petting minigame will eventually lead to huge swaths of content in games being removed for western releases.