"Ren & Stimpy" was really never a children's show at all - the creator of the series, John K., had always leaned towards more adult animation. I have a feeling whoever signed the contract to put the show on a kids' network later regretted the decision, and it's a large part of why the original series was canceled after only a few years, despite a massive fanbase. It was too dark and too filthy for children, and a lot of parents started reacting and complaining to Nickelodeon, which stopped airing the reruns altogether.
In 2003, Spike TV picked up the show after a long absence and began creating "Adult Swim"-style episodes that were intended for mature audiences only. I have yet to see these adult episodes, but I have to say I thought the early episodes of the show - such as this - were probably more clever anyway, because they were subtle in humor - there are numerous sexual references in just this episode alone. Powdered Toast Man scrapes magical cinnamon powder off of his bread, resulting in a very blatant masturbation image. The President gets "something" caught in his pants zipper at a urinal and Powdered Toast Man has to help him. Powdered Toast Man tells a man he has rescued to "tenaciously grab" his buttocks for support. And so on and so forth.
I'm not sure how much of this made it to the final episode - I have a DVD collection and this is allegedly one of the "uncut" episodes from Season One, which means when it was first aired they must have severely edited some of the more raunchy material, but I do happen to recall seeing this on Nickelodeon years ago and I believe much of it was kept intact.
The show is visually more disgusting than anything "South Park" has ever done, which I find really quite humorous given the fact that "Ren & Stimpy" was initially perceived as a children's show. Now the DVD box set has a warning to parents: "This show is intended for mature audiences. It contains adult language and situations."