I have an old-ass account and I'm mostly logged in, so I almost didn't notice the changes (I did go "WTF is amateur, does CHYOA host videos now?). The list of hidden words is rather restrictive. Example: in one story, a character was complaining about his shitty life, and said, when viewed logged-out: "It's ." When logged in? "It's rough."
Maybe some sort of visible censorship ("XXX" or "r*ugh" or "r---h") would look better, so that it doesn't look to the unregistered lurker that the site is composed of terribly edited nonsense.
But I admit, I don't know what kind of legal issues the site is trying to dodge. Do what you need to do to keep this sticky smut haven safe amidst the tempests of prudishness.