I think a happy medium is make up their own vulgar words, the Wheel of Time book series did a great job of this.
Personally, I don't agree that keeping the violence and the immature sex jokes and avoiding mature swearing and sexuality makes the game any more appropriate for children.
"Kids" shouldn't be playing this game at all. And if you do let your kids play this game, you probably don't have conservative family values or are so detached from reality that you don't understand what your child is playing or don't care to check that it might not be okay for them.
The original game was rated M for mature by ESRB (17+), and PEGI 16 in euro countries. This means that people who play this game should be old enough to understand the concepts and terminology used in 'mature' conversation and material.
