While homosexuality is not an uncommon occurence in Japanese Manga and Anime it is rather rare in North American Animation (remember the fiasco when Jerry Falwall protested that Tinky Wink on "Teletubbies" was gay because the character was purple and carried a handbag?).
An article by Paul Sebert entitled "Kissing cousins may bring controversy" which appeared in the June 28th edition of the Daily Athenaeum tells us abit about how Cartoon Network handled the issue, here's a quote form the article:
Not wanting to draw protests or risk losing sponsors, Cartoon Network and Cloverway, Inc.'s handling of the show has understandably been rather conservative, trying it's best to appease both parties. While the L word (Lesbian?) has yet to be utered by a single character, the gay subtext still exists. However, the two media outlets may have very well ended up shooting themselves in the foot. What could go down as one the most dubious moments of judgement in televsion history occurred in one of last week's episodes, when in what appears to be an attempt to draw attention away from the characters's relationship, the two girls referred to each other as "cousins"
you can read the full article online at: http://www.geocities.com/otakongirl18/smsarticle.jpg