Traditionally, I've let my admins handle chat censorship how they please. I'm not one to care much about language for the sake of language, but my personality doesn't represent everybody. Since this is the case, I normally trust whatever level of censoring my admins feel is suitable to the server's population. Since they are on and mingle with the players more than I do, I default to their judgment about what is appropriate for the people on at any given time.
Now, keep in mind that most of our players are probably young (under eighteen). Many are also what I would consider children (under thirteen). Since we don't require a particular age in order to play on the server, we do need to conform a little bit to what would be considered appropriate for the lowest age group. Now, keep in mind that this only applies to the global, zone, shout, and say channels. I do not care what you discuss among a group of willing friends in group or via tell and reply. More power to you to discuss anything you feel like, provided that it is legal in the United States for you to be doing so and whatever laws apply to you where you live. I do not, however, want to feel responsible for obscenities spammed in global chat. A twelve year old does not need to hear about your latest imaginary sexual encounter, and a twenty year old won't care. So, keep it out of the public channels. Do not harass members with it, either. Just because I don't care what you talk about in #tell, that doesn't mean that I won't care about you harassing another member of our community.