The chicken scared of Unicode? Sexually Explicit: HIGH
This needs a completely new implementation that has a bit of contextual understanding. Then: permanently remembering the lowered settings of not terminating output.
Flip over to Gemini? It will shut right off rather than talk about a particular Unicode character.
Right now I let the AI moderate for me - not Google.
I run an (unofficial) AI for a game - and I agree with you, the flagging is terrible. So instead I added each of the flags to my JSON mode schema - it works so much better.