Rubbing is optional, and the odds of it being removed in the American/European version of the game seems pretty likely imo anyways.
Japan is more open to fanservice than Western fans. In fact, the Japanese make quite a profit off of otaku thanks to fanservice and moe. A good businessman is going to do what sells, even if it isn't always the most desirable thing for everyone.
Nohr's side isn't incest, so perhaps you should just stick to that game if the mere existing option bothers you so much.
I never heard about this, but I'm assuming it's not quite as bad as you're making it sound..
As I said in the lower half of my comment, I see girls wear shorts as short as panties on a regular basis during the Summer.
While I may not particularly approve of wearing clothing that short myself, I don't think that it's something people should freak out over.