The statement reiterates that only 0.5% of levels have actually been moderated and while they are looking to improve moderation feedback in the future you can avoid the whole messy business by following these guidelines. Firstly, make sure your level is appropriate for all ages, as LBP is a family game at heart. Secondly, don't take liberties with other peoples' intellectual properties. That means "images, brands or logos" that you're not entitled to use. We're not sure whether that still counts for brands which already exist in the game (for example, if there's a Sephiroth costume available in game, surely his likeness is also usable in levels?), but it's better to be safe than sorry.
