(Deja vu, hasn't this topic been covered feverishly already in 2010 and 2011?)
Yep, but at least it's actually happened now. Not that it changes the theoretical answers that were already discussed back then.
Personally I think this needs to be fixed, I don't feel comfortable having CP links, Bernanke/Sassaman, or Luke-Jr's prayers on my computer.
Better stop using Bitcoin then, because the ASCII tributes and prayers are tens of thousands of blocks back and if you want to have a secure blockchain you'll have to keep them to be able to properly verify it. It's possible after you've synced up the blockchain and the offending material is far enough back, you could scrub it in a hex editor and still run fine. If any transactions you care about are tainted by the ones you censored, there might be problems, not sure. And you might temporarily screw up anyone trying to download those blocks from you because the hash won't match.
And if you're hoping to censor stuff like this in the future, think again: these transactions are just sending coins to addresses whose hash/publickey happens to contain offensive ASCII data. There's no way to stop that without a probability of breaking legitimate transactions that just happen to have "bad" data. "Sorry sir, the system is telling us the ASCII value for your address contains the word "TITS", so we can't give you your withdrawal."