About the 'controversial' cut...
I think the way the Crazy 88 are portrayed is so that the viewer gets exactly that sentiment: that the gang consists of nothing but a bunch of goons with a (probably self-appointed) leader who is equally inept with a sword.
From the moment they walk into the establishment, abusing the public's fear and getting stiff on their power up to when Kiddo walks in, it's just so damn obvious that the Crazy 88 is nothing but a posse that is there to handle O-Ren's dirty work. Kiddo knows just as much as O-Ren that not one of them could hold his (or her) ground in a swordfight with an experienced fighter. The ease with which Kiddo dispatches everyone, and the gore of some of the dismemberment on top, is supposed to display that they're seriously in over their heads, and Kiddo is doing nothing but proving a point by taking them out so viciously. They're in over their heads, they should've stayed out of her way, but since they're there any way, they have to pay.
If you take a look at Gogo's expression when they start making a fuss with everyone, you can clearly see that both O-Ren and Gogo are zoning out of all that nonsense. They consider them little boys having some childish fun, as opposed to the trained professionals that they both are.
The whole scene is nothing more than glorified justice. They're abusing the public and they're getting their comeuppance. In part I think it's also their to serve as a bit of a breather. While Kiddo clearly is more skilled than either assassin on her list, those hits bring some challenges with them, while this could be considered Kiddo blowing off some steam from earlier events, and to get a bit of a warm up before she takes on O-Ren ;-)
And I'm with
ThrowgnCpr on this. Instead of cutting it, I'd use the uncensored version. That's the best possible version of that scene, with some sprinkles on top! :lol: