1. I think it's more about microtransactions than Hot Coffee. Why put cheats for free if you can monetize them.

2. Cheats don't make sense in the age of abundance of games. Previously you'd have 3 games on your PC and you'd try to extract as much fun out of them as possible, so you'd just dick around and do silly stuff, and cheats were helpful in that. Now most gamers literally have a backlog of games, there's no time for that style of gameplay. You're done with the campaign, next game.

3. "Fun" has always been a liability, it's just that previously companies saw that as cost of doing business while nowadays all risks need to be avoided. Doing borderline illegal marketing campaigns was actually normal for many companies. When Burnout 2 was being released in 2002, Acclaim wanted to reimburse speeding tickets in the UK. Think about it for a second.

4. Children playing a literal gang member simulator with all types of violent crimes built in? Business as usual. Penis into vagina? That's a step too far you monster! I never really understood this moral panic about sex. In Europe GTA games are labeled 18+ so Hot Coffee scandal was contained to last pages of video game magazines.