I think AUSA and Otakon AMV contests are run by the same people. Go figure.
Anyway, I was coming at this from a purely administrative angle. If I'm going to look the other way from a rule being ignored, I may as well not even make it a rule. NekoCon allowed a watermarked video into finals and, as a member of their AMV staff who voted for disqualification on those grounds, I thought it looked bad for us.
Seriously, why bother posting an obscenity rule at all? I don't know why it bothers me so much because I understand the logic in the previous arguments. I guess if it were up to me I'd have been afraid of being flooded the following year by others asking me to make similar exceptions for their entries.
Perhaps not all AMV contests can be run the same way. I dunno...