I haven't seen the actually mini yet, but I think i can get the gist....This thing (along with the afore mentioned Kabuki minis), even if made with good intentions as embodiments of all that is evil, etc. The imagery and actual minis just add to the 'perverted smelly guy locked in a basement' that can be seen as a stereotype of the mini gamer (yes, I'm the survey guy). I feel the hobby already has a bad stigma by 'outsiders' and this kind of thing only widens that gap.
True, this kind of thing will always have it's place ( as illustrated by it's sold out in 24(?) hrs) and America, specifically, is prudish in it's thinking of this subject matter, but I have to question the implications of these type of things. Demonic Mother's don't have to be nude or abundantly endowed to be evil, or shocking, nor do female heroes need to be topless with a weapon to be powerful and sensual at the same time...
I did buy the KD death knight figure, but I must admit, I thought that figure was already stretching the boundaries of acceptability...
Edited to add:
I do know there are a few sculptors out there who do this sort of thing as a comical relief sort of thing (klockenbooty comes to mind), but I feel while they are immature and sophomorish, that is the point in those cases. When it becomes intentionally serious and sexual in nature (not to mention the main focus of the company) it becomes even more insulting and twisted.