For me, the work is downright creepy. The artist responsible for these... pieces... is known for his work in Hustler Magazine, among other less-than-conservative exploits. It looks like he pasted the head of a fourteen-year-old onto a nude adult body, and drew the resulting collage. Work on his personal website makes similarly disturbing use of unsuspecting actresses, such as Emma Roberts, Alexis Bledel and Taylor Swift. The small, chubby facial features are clearly meant to make the girl in each image look underage. At this point, I think American Apparel is simply pushing their advertising to be as controversial as possible, under the guise of misunderstanding and conservative bias.
Here's a more interesting, modern, and appropriate take on current censorship standards:
This subway campaign for Daffy's clothing provides a way for consumers to get involved that makes great use of the Twitterverse and social networking strategies, as opposed to simply presenting us with gratuitous sexuality.
Come on American Apparel, overt nudity isn't impressing anyone - even in graphite.

