I see no problem with this. Done tastefully of course.
It should be mentioned though that Arthur is on PBS, which is government sponsered. So, this wouldn't be gov censorship to get rid of it would it? More like government sponsoring to have it. That's one problem some people have, they are paying for it.
But, as with other bigotry, the majority had to be dragged kicking and screaming to realize how stupid they were. So it is with this case.
Now, how about banning the Michael Jackson case from the news? I can't watch the news with my kids around... Oh well, better not to watch it anyway!