The horses blur out when they urinate? Seriously? But they still show the puddle forming underneath. I wonder how that factors into the game rating.
Hosfac recently explained why EA placed the blur there, and on Sims when they urinate. I'll try to include as much of what he said as possible.
Maxis/EA has always inserted random little in-jokes, the most famous of which are "Reticulating Splines" and "Llamas".
Reticulating Splines has something to do with advanced mathematics, rendering, polygons, and textures, I believe. Since nobody (outside of the video-game industry) who doesn't hold a degree in advanced mathematics would have no idea what this means, it became a bit of a joke.
Llamas were the Sports team in a SimCity game, and since then have evolved to become a Sports team,
and the little triangular warning signs that sometimes pop up in the top right to say stuff like "A social worker is on your lot!". The cheat enablellamas reportedly enables/disables them.
And of course, the blur. Technically speaking, if you were to remove the blur when a sim pees, it would make no difference - the sim would be sitting on the toilet
seat, fully dressed, because a toilet is like a chair, in that context. All that hoo-hah about removing the blur and the Sim is stark naked - nope, that's not true (you can see, even with the blur, that a Sim is still wearing clothes). Just what the modder who created that mod programmed into it.
The oversized blur's nothing - just a little joke that EA put in.