I had the good fortune to find a couple of late 19th century editions of Horace and Catullus in used book stores at Christmas. They are Latin and English with certain passages left untranslated. There could be no clearer sign that these were the points of interest that I should focus on first.
This isn't really a new question. It's really about what cultural norms are appropriate for what ages and that will vary widely. What is fine in the Europe will not be so readily accepted by home schooling families in the American South, who may, however, be open to teaching their children Latin to help them advance academically.
Personally, I don't see this as a place to set the standard for advancing the Classics in schools. More significantly, it is a false dilemma. Surely there is a great deal that can be taught without distorting the culture. Certainly understanding the infidelity of the gods doesn't require some of the more graphic descriptions that you might find in some writers. Additionally, industrious students are unlikely to be locked out of anything interesting. As Byron noted in Don Juan:http://www.gutenberg.org/files/21700/21700-h/21700-h.htm
His classic studies made a little puzzle,
Because of filthy loves of gods and goddesses,
Who in the earlier ages raised a bustle,
But never put on pantaloons or bodices;
His reverend tutors had at times a tussle,
And for their AEneids, Iliads, and Odysseys,
Were forced to make an odd sort! of apology,
For Donna Inez dreaded the Mythology.
Ovid 's a rake, as half his verses show him,
Anacreon's morals are a still worse sample,
Catullus scarcely has a decent poem,
I don't think Sappho's Ode a good example,
Although Longinus tells us there is no hymn
Where the sublime soars forth on wings more ample:
But Virgil's songs are pure, except that horrid one
Beginning with 'Formosum Pastor Corydon.'
Lucretius' irreligion is too strong,
For early stomachs, to prove wholesome food;
I can't help thinking Juvenal was wrong,
Although no doubt his real intent was good,
For speaking out so plainly in his song,
So much indeed as to be downright rude;
And then what proper person can be partial
To all those nauseous epigrams of Martial?
Juan was taught from out the best edition,
Expurgated by learned men, who place
Judiciously, from out the schoolboy's vision,
The grosser parts; but, fearful to deface
Too much their modest bard by this omission,
And pitying sore his mutilated case,
They only add them all in an appendix,
Which saves, in fact, the trouble of an index;
For there we have them all 'at one fell swoop,'
Instead of being scatter'd through the Pages;
They stand forth marshall'd in a handsome troop,
To meet the ingenuous youth of future ages,
Till some less rigid editor shall stoop
To call them back into their separate cages,
Instead of standing staring all together,
Like garden gods—and not so decent either.