So the result of the discussion was to keep all the other questionable content available until a PR shitstorm starts to brew?

If they already made a decision why would they not act on it at the same time /r/jailbait was banned?

This whole thing smells like they got their hands forced, which is what worries me.

my interpretation- they were WAITING for an outside party to speak up about it, so they could say "well, x party forced our hand" to shift the blame. Reddit (the company) is terrified of upsetting its userbase, lest it go the way of Digg.