Messerschmitt,
That's okay. I was harsh because you were so forceful that the nudity in 1866 was offensive. In my opinion, it is not. ( I can see how some people would think that it is, though. I live in America, and unfortunately many people here think like this.)
You should realize though that this sort of thing is still allowed in general society. It is called "art". Art is not necessarily pornography. Nudity is not necessarily vulgarity.
As to the "Nudity in games" argument, I will say this. Commercial games do not generally feature nudity because our societal values cause this to instantly be slapped with the "M" rating or worse - which can be the curse of death for many games. It also gets a certain political and/or religious segment involved, and generally makes development more difficult through increased distractions. If this mod were being marketed for sale, we would not have included the nudity or the foul language due to the increased number of hurdles involved, and the reduced sales that would have resulted.
You have to wonder though (as Shrugging Khan pointed out) - In a game where you slaughter innocents by the thousand, is a naked body really so offensive? If you were to judge our society by what is shown in television, a person being shot is much less offensive than a naked body. Pay attention next time you watch TV. Tally up the numbers of murders versus the incidents of nudity. You're going to notice a very strong trend that reflects our societies current attitude towards what is acceptable. We are just numb towards seeing murder on television. Nudity is still considered more or less taboo, so it gets our attention.
I don't know about you, but I for one would much rather have my children see a woman's nipple than have to witness someone being murdered. I am proud to say that my children see nipples all the time, but have witnessed no murders so far.
You'll figure it out for yourself. Just keep an open mind in all things, and don't let others tell you what is right and what is wrong. Decide for yourself.