I think Cliff is right if you want to talk about making Saints Row a bigger mainstream series. I think SR can do it at this point, because the IP and the name is pretty big now. The only worry is alienating yourself from the people who came in for the immaturity. It may have been a mistake to devote an advertising campaign to the dildos, but I think dildos deserve a place in the game if that was their vision for SR3.
You can balance seriousness with off-the-wall humor. Tarantino does this in a lot of his films. Look at Pulp-Fiction, Django, and Inglorious Basterds. I think the franchise is big enough that they could take more risks. It's a legitimate criticism to make, but I still believe there is room for both.
I don't think criticizing SR3 for holding back the industry is a fair criticism. This is the industry. GTA is the biggest series in gaming. It is not above this. It made it's bones freaking mainstream America out. Video Games still shock the mainstream. It's like Rock N' Roll. Eventually the antics will become cliche. SR ratchets up the cliche to humongous levels.
Cliff points shouldn't be invalidated, because he made Gears of War, but his criticism as it pertains to holding back the industry falls flat. Unless he believes Gears held back the industry as well. The bloody chainsaw kills and viciousness of Gears of War were supposed to elicit shock from games. I think you could make an argument that SR did the same thing.