Never thought I'd say this, but I agree with Omi (heh).
I would never want a little kid reading swear words on BZP, obviously he/she will eventually learn it from a friend or some other site, but knowing that BZP was the reason he is dropping the f-bomb everywhere he goes would make the staff/members feel guilty for ruining the innocence of a child. Not to mention it'd get the parents nice and angry.
Now, filtering the shortened form of moderator is another thing.