By simply reading you can tell that it requires there to be "depiction, for a sexual purpose, of a sexual organ or the anal region". A sentinel wearing a body sock for example would not be a problem in Canada. Which is what I've gotten the impression is the worst you can get.
And let's not start discussing "marketability" here. I've been following TERA. They censored their Elin race. Still got bad reviews whining about "creepy children/pedo game". TERA later added swimsuits without censorship, which was worse than the original armors if you look at skin covered... and there was no complaints at all. NONE.
In other words, TERA gained nothing from censorship, and they simply quit censoring new armors because it was just a waste of time, resources and money.
Aeria games can of course attempt any strategy they want. If censoring makes them feel better, then go ahead. Just don't expect reviewer sites to miss that there is a little child sentinel running around in a porn game in the reviewers eyes.