Yeah, if you go back through hundreds of years of artwork, most of it are pictures of women. Some of them are nude. There are many many artists that only draw women, modern or classical. And there's a ton of male Japanese artists from centuries ago that did the same thing.

I asked it to create a sort of witchy, sorceress character and many of the generations she was fully topless with her boobs out, despite me not asking that or even explicitly putting “fully clothed” into the prompt. There was one image that the system created and then removed and threatened me with a ban for it being too sexualized despite me putting no sexual language in the prompt and it being all the AI.

That's just one model, and obviously not Stable Diffusion. LD models are just based on whatever they were trained on. If you don't like it, download another model trained on something else and try it out. Or train one yourself.

Also, I wish everybody would download a SD client and just use this software locally. All of these toy websites are shit, and local clients aren't going to threaten to ban you because of what you generated. It's a good learning experience to figure out the software, and these tools are useful for more things than just bitching about the tech on the web.