1)Rockstar is responsible and should be fined for not telling the ESRB everything that is included on the game. How else are they supposed to rate it if you hide "easter eggs" and don't tell them about it.
2)As far as my understanding, its a software change mod. No hardware required. PC only can be hacked. Havent heard of ps2 version or xbox having it done but I am sure there is a way.
3)If your a parent and you let your kid play GTA:SA and now you are upset because of this, YOU might need to get fined yourself for being an idiot.