I can well understand the basic idea behind this action. Sure, everyone who plays VRChat knows that we are talking about things that are absolutely not for children. However, I don't like the implementation of that at all and I don't think it will do any good.
What are the conditions to be activated for Custom Characters or Worlds?
This is not communicated clearly. I don't think it will affect existing accounts, or is it not clear from the article. If I suddenly couldn't be a penguin anymore, I'd be very frustrated. In addition, this new rule offers plenty of space to quickly deprive unpleasant worlds or characters of the possibility to show them.
You could also simply insert an age restriction when creating an account and when entering worlds that are not free of minors, insert a hint that you have to confirm. If your age in the account does not meet the requirements of the world you will not see them at all. Furthermore, you could include a similar function in characters, so that you don't see them moderately by default, if the age doesn't fit.
Of course, my ideas are easy to circumvent, but after all, the parents also have a responsibility. If you ask me, children under 14 have not lost anything in VRChat anyway.
"When the system launches, all VRChat account users will receive notifications indicating their status in the Content Gating system." So it will affect current accounts, probably based on your recent history.
Also, private rooms = no restrictions. You can be nude, or host a virtual sex toy part. whatever. It's private room only accessible by invite, so age shouldn't be a problem. But, yeah, if you're in a public room, don't do things that violate TOS, that's common sense. The age to play VRChat is 13 and up, the same as even having a Steam account.
This isn't mean to target underage content, it's made to discriminate based on the opinions of other people. You can get banned from uploading content just because a group decided to block/mute/kick you because they didn't want you around. Not necessarily because you did anything wrong.
They don't really say what the conditions are, and they said that they won't be releasing the details about the system. Personally, I feel that is bullshit. And they don't specify whether it will block stuff you already have uploaded.