As anyone who has presided over an internet community can tell you, the key to success lies in moderation. Allowing people to express themselves is essentially what it's all about, but it needs to be within a reasonable limit, a precarious balance that can be difficult to strike. This has been a hard-learned lesson for Sony, which has been having a hell of a time in LittleBigPlanet with the copyright-infringing nature of Mario's Law--the rule which dictates that, whenever a game allows for user-created content, it will be used to recreate some portion of World 1-1 from Super Mario Bros.
I can't really fault Sony for being nervous about potential for litigation that's inherent to LittleBigPlanet's level editor, though it seems that someone has gotten a little overzealous with what's getting pulled. Kotaku most recently reported that Sony has put the kibosh on the user-made level Azure Palace, a move that has stoked the fires of frustration within the LittleBigPlanet community. Here's a quick run-through of the level, which seems like one of the better showcases for LittleBigPlanet that I've seen. See if you can spot the problem, something I'm having a hard time doing.
It would seem to me that, even if there were some copyright issues with the Azure Palace level, it'd be worth gamble just to inspire other would-be level designers. The game itself is pretty smartly wired to allow the community some level of self-moderation, but I get the sense that Sony had no idea the amount of thoughtful post-release vigilance this game was going to require. It's really unfortunate that LittleBigPlanet has been so continuously tainted by disc recalls, connectivity failure, and content issues. This was supposed to be our big feel-good game of the season, something innocent and approachable that showcased some creative and inclusive technology, as well as the community's best intentions. Instead, it's turned into a high-profile internet forum dispute.
UPDATE: Sony has restored the Azure Palace level, bringing peace and balance back to our universe. Or, at least, it's a step in the right direction.