If a childrens show episode is banned, there's a reason for it. Remember that Game Freak is a place of business. They aren't going to do something or overlook a potential risk that could hurt sales.
Movies like The Dark Knight Rises? Which is rated PG-13? Exactly, Pokemon is a kids show, with a target demographic as young as preschool kids. Violence, profanity, and sex don't belong in programs for kids.
Also, there have been a few cases where kids DO attempt to do things seen in cartoons such as start fires and play with guns. Kids sometimes don't understand that fiction is fiction, so they don't want kids pointing guns at each other just because it happened to Ash and Pikachu. The earthquake thing is because it was a horrible event that resulted in death and destruction.
That doesn't change what it resembles. It may not have been intended to be racist, but when someone complains about something like that, it could hurt your business not to address it.
No. Only a handful of episodes where banned out of a series of 700+ episodes and over a dozen movies total. The series has not suffered for banning these episodes.
James wore dresses in several episodes of the first season that were not banned so it had nothing to do with that. It's different when he was in a suit that gave him breasts in a bikini posing as a woman in a swimsuit contest. Though, this episode was edited an aired.
Brock flirted with the girls, but to my knowledge, he never did or said anything inappropriate to them, so there was no reason to ban those eps or edit them. Johnny Bravo was far worse.