But if companies think there is enough money to be made from people who are offended by content of one kind or another in movies, rest assured that they will trot out alternatives for those buyers if they are able to do so.
Even right now, there are two versions of certain music albums marketed: explicit version and censored version.
But it's still not common practice to release inoffensive versions of more explicit movies, despite certain groups' efforts to that effect. There's some online petition to get a PG-13 version of "Deadpool," but there's no chance the studio will actually do it.
I can only think of one official release of that type, The King's Speech (which
really didn't deserve the R rating it got in the US

). The PG-13 cut was critically ridiculed, didn't make much money, and therefore wasn't released on DVD/blu-ray.
It more often goes the other way, with some movies that were theatrically released as a PG-13 version getting "harder" versions for home viewing. IMO, this is generally (but not always) either in response to low box office performance and criticism that the theatrical version sucked, or because the director insists that the theatrical version stifled his true "vision," but not out of a desire to market separately to "family" and "mature" audiences.
Anyway, as far as removing Collins from TMP.... in my mind, I always completely separate an artist as a person from the work that they do. So if an actor is a major jerk, or supports ideologies I strongly disagree with, or has even admitted to, been accused of, or been convicted of some heinous conduct, it really has nothing to do with their fictional role in a movie.
The comment above about directors also makes a good point. I don't feel compelled to boycott Roman Polanski's films because of his personal behavior and fugitive status, for instance.
I am also against smoking. But yes, it was a big part of the cultural landscape of the past.
Mad Men would have been pretty bogus and unauthentic without ubiquitous smoking (and its sad consequences depicted toward the end of the series). And smoking is still a defining aspect of some modern-day characters, even if as a vice. Can you imagine Wolverine without his cigars?
Kor