When was the Book of Erotic Fantasy announced, anyhow? Andy Smith did mention this tidbit on the WotC boards:
This change has been in the works for arcane legal reasons for over a year.
Has it really been a full year since the BoEF was announced? I wouldn't have thought so. Likewise, if it hasn't been a year yet for that, then it wouldn't have been a year yet since Anthony Valterra left WotC, so as business manager, he shoulda known about this standards of decency bit, right?
Now, if it has really been a year (and where does that time go?), then that's one thing.
If it hasn't been a year, then it stands to reason that this change cannot have been precipitated by the BoEF, however. Exacerbated and/or accelerated perhaps, but not precipitated.
Edit: Okay, so I looks me on the Valar Project website, and their initial craptastical press release about peering up Arwen's skirts is dated April 28, and was posted on their site May 1, 2003. As I recall, Anthony Valterra left WotC at right about that time, so he left (assuming that Andy Smith is correct above) after the legal department had been working on the standards of decency for 8 months.
Therefore, I fail to see how this can be blamed on him. Unless, of course, Andy's either wrong or lying. I'd rather not think he was lying, but people do it, blast them.