As a parent, it's difficult for me to sit back and watch the Indy flicks with my five year old around. Last Crusade is the one I watch with him, but he gets bored quickly because the action is sparse. Raiders has worked really well, and when I informed him that the opening might be scary, he quickly shut up and sat on the edge of his seat. Fortunately, he survived seeing both the dead body and Satipo impaled on the wall spikes, so I'm confident in his current level of what he can handle in movie violence. However, the face melting and the heart ripping are not happening for a while.
Here's my honest take on Temple of Doom: it ought to be rated R. It's bloody and graphic, much like Raiders, but the difference with Temple is that it's intense. We get a close up of Mola Ram's hand reaching into another man's chest. That's pretty f*cked up right there. And it's not like there's room for interpretation, he's reaching inside his chest. Very seldom do we see scenes like that even in modern PG-13 films, but moreso in R rated films. And it's even more intense in that we see the heart beating afterward, the hole in the chest close up, and then the man is SLOWLY lowered into the lava, where we see a prolonged shot of his body catching on fire while he writhes and screams and see Mola Ram laughing as the still-beating heart catches on fire. It's so intense, so graphic, that I'm serious surprised that this film still escapes with a PG, when even modern PG-13 standards couldn't fit this film.
Should it be censored? Of course not. The level of intensity fits the movie in context of the story and of what's at stake here. I appreciate the level of intensity and violence in the film; it's one of the reasons I prefer it to the other Indiana Jones movies, in that the whole of the violence feels organic and necessary to the movie. But should it be given a harder rating? Yes, I believe it does. Partially for graphic violence, but mostly for the intensity of the graphic violence. Raiders never lingered on the violence the way this film does, mostly because it didn't need to, where Temple does need to.
My $0.02.