For a change...
...I think this is a decent decision.
Simulating murder can have a place - indeed computer games are reliant upon it - and the gaming world is better for that freedom, to use in context.
Rather like the degeneration of the Saw series of movies from the intriguing and suspenseful first to the spiritless and dehumanising fourth film (which was nothing but a cheap nod to the emo / goth Saw fans, trying to out-do any prior movie violence to satisfy their middle-class pretentious posturing), there comes a point when the sadism and brutality is only for it's own sake.
I've played Manhunt 2 (it's not exactly hard to get hold of if you know how), and it was both joylessly and spiritlessly violent, and empty and boring. There was no hope in the game, no sense of aspiration, it was repetitive, depressing and holds no appeal to any sense of human endeavour. Chop-move-on-murder-move-on...
The current status quo is fine - noone is going to go out of business if it stays unreleased, it's one title amongst tens of thousands.
It's not state censorship, it's only a computer game. There's plenty of censoring of stuff that actually matters to people (whether it be their health, family, number of doughnut vouchers in pockets or whatever) in the UK, more deserving of anti-censorious action; this on the other hand is just entertainment, and is just a mite too empty, vacant and hopeless (in the truest sense of the word) to warrant general release.