Well, I'm currently at uni in the UK so I have got the other end of the story so to speak. I personally think it is ridiculous, but OFCOM and the regulators here are a bit stricter than we are in Australia I think... that stiff upper lip thing still does apply. Bloody is considered offensive over here and at the BBC and other tv/media companies it's what we call a "referrable word"... meaning that to use it in a program or show requires clearance from a higher authority and it can impact what viewing classification it gets. It's a word that is apparently is quite offensive to Catholics, and one has to remember when we are talking about Britain that includes Northern Ireland so I think there are always many sensitivities that have to be considered in regards to that situation there.
I personally think it's a storm in a teacup and have no problem with the ads. I think you would find the overwhelming majority of poms would have no problem either. It's just the regulators trying to not step on people's toes. But really, the ban has actually generated more publicity than any normal TV ad could, so it's pretty effective advertising!