Apparently, Vampire Bund contains some edgy controversial scenes that are inappropriate for US viewers...or at least what Funimation claims. So Funimation was faced with a business dilemma: A lose or lose situation where you have to pick which is the lesser loss of the two. No one really knows who made the final decision, whether it was someone at Funimation, or whether it was actually someone in the parent company, Navarre. My guess that it was the latter since this decision was very... out of touch with the fans.
Censorship in Anime is a very touchy issue especially since the DVD buying crowd absolutely abhors censorship. This DVD buying crowd has grown up with anime series that were cut up and censored by US companies so therefore any new censorship cuts real deep into the fan psyche. The result is obvious, everyone and their mom was angry about Funimation's decision. Not only did people declare that they won't be buying the dvd release, they shitlisted Funimation completely, boycotting all their releases. The logic behind this is simple, since the decision was made by the higher ups, the higher ups will only act when loss of profits becomes a big issue and so boycotting Funimation is the only thing a fan can do to force a reversal. Personally, I will continue to support Funimation through this turbulent time.
Many people have claimed that this decision was due to the Handley case. I can see why ...but really, the Handley case has very little to do with an anime that contains topless child-like vampires. Handley had hardcore pornographic comics; Vampire Bund does not have explicit sex nor does it have nudity beyond just topless girls. Big difference. So the controversy has nothing to do with the legality of the show itself, more like that these controversial scenes just might hurt Funimation's corporate image. Another supporting fact is that FUNi has already released a few shows that feature underaged nudity such as Dragonball, Rin, and even Strike Witches.
So what happens now? What will Funimation do? What will you do? FUNi has some options on their hands. My guess is that they will simply try to weather the storm and hope that people will simply forget this ever happened and buy the censored version of the DVD anyway. The fans on the other hand, are smarter than that. They might forget about it, but they will never buy an edited dvd out of instinct. And more importantly, more than 95% of them will NOT buy it. ...I certainly won't.
So what will people do instead; now that they learned of this new, sinful, controversial show? A small number of them, will purchase the R2 releases. However, many others will simply turn to fan-subs. Obviously, why spend money on an inferior product? Or so is the logic behind this action. Alternatively, people will simply purchase the manga and never touch the anime. The manga is now probably getting tons of sales right now. In b4 Seven Seas paid Funimation off to create a viral controversy.