If you wanted to know what exactly the Australian OFLC had issue with in the recently banned "Reservoir Dogs" game, then this article will interest you. An MTV journalist describes a demonstration of the offending part of the game by the game's producer, during an Eidos media event in New York...
... Eventually the meter was full. The cops surrounded Mr. Blonde and his hostage. The police had their guns drawn. But with that meter full, McCracken could pull off a special move. Mr. Blonde was going for the hostage's ear. The camera cut away to the side - not showing the deed, just as the movie didn't. When the camera returned, the hostage had already yelled. His ear was in Mr. Blonde's hand. And the police, horrified, had dropped their guns.McCracken rested his controller. "And that's what got us banned."
"I don't think it's that bad," Gill added.