It looks like the interviewer actually went down to the nitty gritty on this one
Finger: What do the guys at Bethesda think about the Hot Coffee situation with regard to third-party mods? A few people out there made some pretty risqué mods for Morrowind, nudity included, and it seems likely that it could happen again with Oblivion. Is Bethesda doing anything specific to make sure that gamers' favorite lawyer, Jack Thompson, won't be writing an "open letter" to the world about some guy's Oblivion mod?
Pete Hines: Well, you're really talking about two different things there. There's a difference between what we create and put in our game, be it visible or hidden away somehow, and what an end user creates and puts in our game themselves. User created mods are just that, user created. It doesn't exist in our game that way. They have to create the new art themselves and put it in the game. We don't control or monitor that process. It's up to the individual user as to what they create and/or choose to play with. The original game and what it contains is our responsibility and that's what we focus on. To that end, Oblivion has no such issues. It is true to the rating and descriptors on the box. Period.
