Cleanflicks
does not have a liscense or permission to edit the films they rent, and there has been a long series of lawsuits over their unauthorized editing of these works.
Whether this is legal is still in the courts. The studios and directors do not like the practice at all and are trying to get it stopped.
Ethically, I don't think they have a leg to stand on. They're taking someone else's copyrighted artwork, altering it against their wishes and without their permission and making a profit off of that.
It's about as bad as colorization.
On the other hand, I love Trio's "Good Clean Porn", which features hard core porn edited for tv. They can usually get two full length movies into a half hour show once all the sex is cut out. It's a hoot.
Gilda