It still strikes me as odd that violence is cool but something like this has people freak out
For me, it's not as much the theme as it is the ridiculous degree to which it's been taken. I'm not keen on hyper violence, either. I think this sculpt just tries too hard and comes off looking stupid. If he'd stopped a while back (hard to say where,) he could well have created something that I might have found repellent yet strangely appealing. Giger's a great example; he never goes to this kind of extreme (that I've seen, at any rate,) and his works are usually strange, surreal, and disturbingly sensual at the same time. Then, as he put it in an interview once, he paints something covered in penises just to poke fun at everyone, and that's when I roll my eyes and move to the next picture.
I agree with some previous posts that the concept actually does have merit. I kind of agree; that's why I enjoy Alien so much (just the first two movies, and none of the books or comics, mind) because it's sometimes fun to play on our insecurities and create something that we are so helpless against. But this is simply too much, and almost comes off as a joke on itself.